CFTC sues Wisconsin to uphold regulatory authority over prediction markets

Odaily Planet Daily News: The U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Wisconsin on Tuesday, seeking to preserve its regulatory authority after the state sued multiple prediction market platforms. In a statement, the CFTC said the lawsuit targets Wisconsin’s actions against five CFTC-regulated prediction markets: Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase. CFTC Chairman Michael Selig said that states cannot evade Congress’s clear directives, and that if they interfere with the enforcement of federal laws regulating financial markets, the agency will take legal action. This is the CFTC’s fifth such lawsuit against U.S. states; previously, it sued New York, Arizona, Connecticut, and Illinois. Wisconsin had previously argued that prediction market contracts related to sporting events constitute illegal gambling and require state gaming licenses. The CFTC, together with the U.S. Department of Justice’s Civil Division, filed a request in the federal court in Wisconsin, arguing that it has exclusive jurisdiction over prediction market event contracts that are designated contract market contracts. The defendants include Wisconsin Governor Anthony Evers, State Attorney General Josh Kaul, and the state’s gaming department.