The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Wisconsin, challenging the state's regulatory actions against prediction market platforms. The CFTC's legal move aims to assert its authority over platforms such as Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, which are regulated by the CFTC. This lawsuit follows Wisconsin's claim that prediction market contracts related to sporting events are illegal gambling, requiring a state gaming license.
CFTC Chair Michael Selig emphasized that states cannot override federal laws governing financial markets. This marks the fifth lawsuit by the CFTC against a U.S. state, with previous actions taken against New York, Arizona, Connecticut, and Illinois. The complaint, filed in federal court in Wisconsin, names Governor Anthony Evers, Attorney General Josh Kaul, and the state's gaming division as defendants, asserting the CFTC's exclusive jurisdiction over event contracts on designated contract markets.
CFTC Sues Wisconsin Over Predictive Market Regulation
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