CFTC sues Wisconsin over prediction market regulations
The commission says Congress gave it exclusive jurisdiction over event contracts, setting up a national fight over prediction markets and state gambling laws.
- On Tuesday, the Commodity Futures Trading Commission sued Wisconsin in federal court, asserting exclusive jurisdiction over event contracts and seeking to block state regulation of prediction markets.
- Wisconsin Attorney General Josh Kaul initiated the conflict by suing five platforms—Kalshi, Polymarket, Coinbase, Robinhood, and Crypto.com—last week for allegedly facilitating unlicensed gambling by disguising sports bets as event contracts.
- CFTC Chairman Michael Selig argued Congress assigned exclusive jurisdiction over derivatives to the agency decades ago, while Kaul denounced the federal suit as a "power grab" limiting the state's ability to protect residents.
- Similar federal suits have been filed against New York, Arizona, Connecticut, and Illinois, where courts have already issued restraining orders pausing state-level prosecutions of CFTC-regulated companies.
- This national debate over event-based trading threatens to disrupt state and Tribal gaming revenue as courts define the extent of federal authority over the emerging prediction market industry.
33 Articles
33 Articles
Federal government sues Wisconsin over state's lawsuits against prediction markets platforms
Wisconsin is the latest state to be sued by the federal government over its attempt to shut down prediction markets from being used by residents. The post Federal government sues Wisconsin over state’s lawsuits against prediction markets platforms appeared first on WPR.
Federal government sues Wisconsin over prediction market crackdown
MILWAUKEE— The federal government is suing Wisconsin, escalating a legal battle over online prediction markets and whether they count as gambling. The Commodity Future Trading Commission filed the lawsuit this week after Wisconsin moved to crack down on several major platforms– including Coinbase, Robinhood, Kalshi, Polymarket and Crypto. Last week, Wisconsin Attorney General Josh Kaul sued those companies, accusing them of facilitating illegal …
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