CFTC Takes Wisconsin to Court in Ongoing Battle for Control Over Prediction Markets

The Commodity Futures Trading Commission has added Wisconsin to its list of states being sued over the agency's jurisdiction on event contracts, following similar lawsuits against New York. Several states have taken action against companies like Kalshi and Crypto.com, alleging they are violating state gaming laws, but CFTC Chairman Mike Selig is leading a counterattack, arguing the agency has sole authority over the trading of event contracts. Wisconsin recently sued several companies, including Kalshi and Crypto.com, for operating unlicensed gambling operations. In response, Selig filed a lawsuit in the US District Court for the Eastern District of Wisconsin, stating that interfering with federal law regulating financial markets would result in legal action. This move is part of a larger effort by the CFTC to assert its authority over prediction markets, with similar lawsuits filed against other states, including New York, and a criminal case in Arizona put on hold due to potential federal preemption.