US Regulatory Body Takes Wisconsin to Court Over Prediction Markets

The US Commodity Futures Trading Commission has expanded its legal campaign to defend its authority over prediction markets by suing Wisconsin, which recently took action against companies such as Kalshi and Crypto.com for allegedly operating unlicensed gaming operations. This move follows similar lawsuits against other states, including New York, as the CFTC asserts its exclusive jurisdiction over event contracts, which it considers a form of derivatives activity. CFTC Chairman Mike Selig has been leading the charge, arguing that the agency has the sole authority to regulate these markets. The lawsuit against Wisconsin is a response to the state's recent legal action against several companies, and it sends a clear message that the CFTC will not tolerate interference with federal law in regulating financial markets. This development is part of a larger trend, with the CFTC drawing a clear line in the sand to prevent state encroachment on its regulatory authority.