CFTC Backs Kalshi in Ohio Appeals Court Fight

The U.S. Commodity Futures Trading Commission (CFTC) has filed an amicus brief supporting prediction market platform Kalshi in its legal battle with the state of Ohio. The CFTC is asking the Sixth Circuit Court of Appeals to overturn a lower court's decision, arguing that Ohio's attempt to regulate sports event contracts offered by Kalshi constitutes "jurisdictional overreach." Ohio authorities had previously ordered Kalshi to cease offering these contracts, deeming them unlicensed sports gambling. The CFTC asserts its exclusive jurisdiction over such event contracts, which are traded as swaps or binary options on designated contract markets (DCMs). This case is significant as it could set a precedent for how states can regulate federally overseen prediction markets, impacting platforms like Kalshi and Polymarket. The CFTC has previously supported prediction markets in similar legal disputes and has also initiated lawsuits against several states to defend its regulatory authority.

(Source：Cointelegraph)