CFTC sues Wisconsin in agency's legal campaign defending prediction markets authority
The CFTC is suing Wisconsin for interfering with federal regulation of prediction markets.Summary
The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Wisconsin, adding it to a growing list of states being sued by the agency. This legal action is part of the CFTC's broader campaign to assert its exclusive jurisdiction over prediction markets, which it views as a form of derivatives activity. States like Wisconsin have previously sued prediction market platforms such as Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, accusing them of operating unlicensed gambling operations. CFTC Chairman Mike Selig has responded by suing these states, including New York, Arizona, Illinois, and Connecticut, to push back against their interference with federal law. Selig aims to send a clear message that the CFTC will take legal action against any state that attempts to regulate financial markets under its purview. A recent court ruling in Arizona, which paused a criminal case against Kalshi, supported the CFTC's argument that federal law preempts state gambling laws in this area.
(Source：CoinDesk)