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The CFTC's Losing Parlay - New Civil Liberties Alliance

nclalegal.org

The CFTC built its sports-contracts ban on a multi-part legal theory — and its own rulemaking may have knocked out every leg at once.

Regulatory CapturePrincipal-Agent ProblemSlippery Slope ArgumentAdministrative Law
The CFTC's Losing Parlay - New Civil Liberties Alliance

Theory Briefing

  • The CFTC's case against sports-event contracts requires every element of its legal theory to hold — one failure collapses the whole argument.
  • The agency's own rulemaking process appears to have undermined the very reasoning it relies on to ban these contracts.
  • The New Civil Liberties Alliance frames this as a classic regulatory overreach: an agency stretching its mandate until the structure breaks under its own weight.
  • Sports-event futures contracts sit in a legal grey zone — the CFTC must prove they are categorically different from other event contracts it already permits.
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