The U.S. Commodity Futures Trading Commission (CFTC) has sued Wisconsin, expanding its legal offensive to defend its authority over prediction markets. This action follows similar lawsuits against states like New York, Arizona, Illinois, and Connecticut.
CFTC Chairman Mike Selig asserts that the agency has exclusive jurisdiction over event contracts, viewing them as a form of derivatives long regulated by the CFTC. Wisconsin had previously sued Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com for allegedly running unlicensed gambling operations.
In response, Selig stated the CFTC will sue any entity that interferes with federal law in regulating financial markets. The commission's legal pushback is gaining traction, with a federal judge recently pausing Arizona's criminal case against Kalshi, recognizing the CFTC's likely success in preempting state gambling laws.
