US Sues States to Stop Prediction Market Regulation
The US sued three states on Thursday to block local regulation of prediction markets. Officials argue the CFTC has exclusive authority over these contracts.
The United States government has filed lawsuits against Arizona, Connecticut, and Illinois, seeking to halt state-level regulation of prediction markets. The administration contends that these states are unlawfully attempting to police event contracts, which falls under the exclusive regulatory authority of the Commodity Futures Trading Commission (CFTC). The legal action follows efforts by state gaming regulators to shut down operations for several prominent platforms, including Kalshi, Polymarket, and Crypto.com, as well as futures commission merchants like ROBINHOOD MARKETS INC - A. State officials have alleged that these companies violate local gambling laws by facilitating unlicensed wagering on sports and political events.
