CFTC Challenges Wisconsin’s Regulation of Prediction Markets
- The CFTC filed a lawsuit against Wisconsin after the state targeted prediction market platforms like Polymarket, Kalshi, Coinbase, Robinhood, and Crypto.com.
- Wisconsin is the fifth state sued by the CFTC in recent weeks for attempting to regulate prediction markets under state gambling laws.
- The state’s lawsuit focused on sports-related markets, which it argues are unlicensed sports bets.
- CFTC Chair Mike Selig emphasized that states cannot override federal law in regulating financial markets.
The CFTC’s legal action against Wisconsin represents an ongoing jurisdictional dispute over prediction markets, which are viewed by states as illegal gambling but defended by the CFTC as federally regulated event contracts.
Wisconsin’s lawsuit is part of a broader conflict involving both Democratic and Republican states opposing federal regulation of prediction markets as sports bets without proper state registration. (Source)
