CFTC sues New York over prediction market crackdown as 38 AGs back Massachusetts’ Kalshi case
The Block
The CFTC is suing New York to block state gambling enforcement against federally registered exchanges amid a broader battle over prediction market jurisdiction.Summary
The legal conflict between federal regulators and states regarding prediction markets has intensified as the CFTC filed suit against New York to prevent state-level enforcement against CFTC-registered exchanges. This action follows a bipartisan coalition of 38 attorneys general filing an amicus brief supporting Massachusetts in its efforts to regulate Kalshi's sports event contracts. States argue these contracts constitute illegal gambling, while the CFTC maintains federal preemption under the Dodd-Frank Act, leading to split judicial rulings across the country that may ultimately require Supreme Court intervention.
(Source：The Block)