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CFTC sues Wisconsin over prediction market regulations
The commission says Congress gave it exclusive jurisdiction over event contracts, setting up a national fight over prediction markets and state gambling laws.
- On Tuesday, the Commodity Futures Trading Commission sued Wisconsin in federal court, asserting exclusive jurisdiction over event contracts and seeking to block state regulation of prediction markets.
- Wisconsin Attorney General Josh Kaul initiated the conflict by suing five platforms—Kalshi, Polymarket, Coinbase, Robinhood, and Crypto.com—last week for allegedly facilitating unlicensed gambling by disguising sports bets as event contracts.
- CFTC Chairman Michael Selig argued Congress assigned exclusive jurisdiction over derivatives to the agency decades ago, while Kaul denounced the federal suit as a "power grab" limiting the state's ability to protect residents.
- Similar federal suits have been filed against New York, Arizona, Connecticut, and Illinois, where courts have already issued restraining orders pausing state-level prosecutions of CFTC-regulated companies.
- This national debate over event-based trading threatens to disrupt state and Tribal gaming revenue as courts define the extent of federal authority over the emerging prediction market industry.
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24 Articles
24 Articles
Coverage Details
Total News Sources24
Leaning Left0Leaning Right3Center10Last UpdatedBias Distribution77% Center
Bias Distribution
- 77% of the sources are Center
77% Center
C 77%
R 23%
Factuality
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