US Regulatory Body Takes Wisconsin to Court Over Prediction Markets

The US Commodity Futures Trading Commission has added Wisconsin to its list of defendants in a legal battle to assert its jurisdiction over prediction markets. This move comes as several states, including New York, have attempted to crack down on businesses such as Kalshi and Crypto.com for allegedly violating state gaming laws. CFTC Chairman Mike Selig has been leading the charge, arguing that his agency has sole authority over event contracts, which he claims are a new form of derivatives. Wisconsin recently sued several companies, including Kalshi and Crypto.com, for operating unlicensed gambling operations, prompting the CFTC to file a lawsuit in response. Selig stated that the agency will take action against any state that interferes with federal law governing financial markets. Similar lawsuits have been filed against other states, including New York, Arizona, and Connecticut, with a court in Arizona recently pausing a criminal case against Kalshi, citing the likelihood of federal law preempting state regulations.