Sleeper Markets LLC, a sports app with 10 million users, filed a civil suit against the Commodity Futures Trading Commission (CFTC) and its acting chair, Caroline Pham, alleging the CTFC unlawfully blocked Sleeper’s application for futures commissions merchant (FCM) license in a decision that unfairly favors competitors and immediately harms Sleeper’s business.

Pham, as the leader of the CFTC, has repeatedly claimed to be committed to innovation and free markets. Sleeper’s experience with unreasonable delays and a complete lack of communication call that commitment into question, the company said.

The legal complaint is the first filed by Sleeper in its 10-year history. It claims the CFTC has meddled in the long-established and straightforward FCM approval process which, by law, requires that an applicant be approved once its application is complete. In doing so, the CFTC upended Sleeper’s rigorous months-long application process rather than follow the clear law.

For over 40 years the CFTC has designated responsibility for approving FCM applications to the National Futures Association (NFA). Sleeper submitted its FCM application to NFA in May 2025. Over subsequent months, Sleeper met a series of weekly deadlines set by the NFA, including implementing recommended technical changes to Sleeper’s platform. By August, the NFA confirmed Sleeper’s application was complete and first in line for approval, positioning the company to expand its services for users ahead of the National Football League’s 2025 season.

Sleeper alleges that the application was unlawfully blocked when the CFTC told the NFA not to approve the application, despite having no legal authority to do so. Sleeper’s application has sat idle for more than a month, with no notice of deficiencies, no hearing, and no lawful explanation. Further complicating the matter was the NFA’s approval of an FCM license to PrizePicks – a direct competitor – while the NFA unreasonably delayed Sleeper’s application.

“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.”