Sleeper Sues CFTC Over Blocked License Application

Last Updated: October 1, 2025 7:57 AM EDT • 2 minute read X Social Google News Link

Fantasy sports app Sleeper Markets LLC has taken legal action against the Commodity Futures Trading Commission (CFTC) and its acting chair, Caroline Pham, claiming the regulator unlawfully halted the company's futures commission merchant (FCM) license application.
The fantasy sports operator argues the move unfairly benefits competitors while immediately limiting Sleeper's growth. The lawsuit follows an earlier legal challenge the company filed this month concerning the same issue.
In its filing, Sleeper stated this is its first lawsuit in its decade-long history and accused the CFTC of obstructing a process that federal law requires to proceed once an application is complete. The company added that it met every deadline and addressed technical feedback throughout the summer.
By August, the National Futures Association (NFA) confirmed that the application was complete and first in line for approval.
According to the complaint, the CFTC intervened to prevent the NFA from granting the license, despite the association having approved an FCM license for competitor PrizePicks. Sleeper claims its application has since stalled with no explanation or opportunity to respond.
The lawsuit, filed in the US District Court for the District of Columbia with Milbank LLP as counsel, asks the court to block CFTC interference and declare Sleeper eligible for registration under the Commodity Exchange Act.
"The CFTC's unlawful actions present an unfair competitive hurdle to a growing U.S. industry," said Sleeper's Chief Executive Officer, Nan Wang. "This is about more than just one app. It's about whether these innovative new American markets are truly governed by transparent and fair rules, or by a single decision maker picking winners and losers."
White House considers alternatives for CFTC leadership
The lawsuit comes as questions grow over the future of the CFTC's leadership. The White House is reportedly weighing alternative nominees to chair the agency while Brian Quintenz's stalled confirmation continues in the Senate.
Quintenz, nominated in February, has faced repeated delays in his confirmation process. Although the administration postponed a Senate Agriculture Committee vote in July, it has not formally abandoned his candidacy.
His nomination has faced opposition from within the crypto industry, most notably from Gemini founders Tyler and Cameron Winklevoss, who argued that his approach to digital assets diverged from the administration's priorities. Quintenz has accused the brothers of lobbying President Trump against his appointment after he declined to advance one of their prior complaints against CFTC staff.
At a recent Senate hearing, Quintenz did not promise to enforce sport-related prediction markets sternly and indicated a cautious approach to platforms like Kalshi. Meanwhile, lawmakers are in the process of drafting legislation that would give broader implications to CFTC leadership regarding digital asset regulation and bestow additional significance upon it.
With Pham as acting chair and intending to resign when a permanent leader is chosen, the agency's direction remains uncertain.

Ziv Chen X social