CFTC Expands Legal Actions Against States Over Prediction Markets
- The U.S. Commodity Futures Trading Commission (CFTC) sued New York, asserting its exclusive jurisdiction over prediction market firms.
- Earlier this week, New York filed lawsuits against Coinbase and Gemini for violating state gambling laws related to prediction markets.
- CFTC Chairman Mike Selig emphasized the agency’s commitment to protecting access to event contracts amid a wave of state lawsuits.
- 37 state attorneys general signed a legal brief opposing CFTC’s preemption theory in ongoing litigation involving Kalshi in Massachusetts.
- The CFTC has also initiated legal actions against Arizona, Connecticut, and Illinois regarding similar issues with event contracts.
The CFTC’s lawsuit aims to reinforce federal authority over prediction markets, countering state-level restrictions that could limit consumer access to these financial instruments.
With the recent addition of New York to its list of states being sued, the CFTC is actively defending its regulatory jurisdiction over derivatives and event contracts amidst increasing state-level challenges.(Source)
