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

The Commodity Futures Trading Commission has added Wisconsin to its growing list of states being sued for attempting to exert control over prediction markets, with firms such as Kalshi and Crypto.com at the center of the dispute. Several states have taken action against these companies, alleging violations of state gaming laws due to betting activities on their platforms. However, CFTC Chairman Mike Selig has spearheaded a legal counterattack, arguing that the agency has sole jurisdiction over event-contract trading, which he believes is a form of derivatives activity that falls under the CFTC's purview. Recently, Wisconsin filed a lawsuit against Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com, accusing them of operating unlicensed gambling operations within the state. This move echoes similar claims made by other states against the industry. In response, Selig has filed a lawsuit in the US District Court for the Eastern District of Wisconsin, stating that his intention is to send a clear message: "If you interfere with federal law regulating financial markets, we will take legal action against you." Last week, New York also sued Coinbase and Gemini over their prediction markets businesses, prompting the CFTC to respond with its own lawsuit against the state. According to Ryan VanGrack, Coinbase's vice president of legal and head of global litigation, "The CFTC's lawsuits, including those in New York and Wisconsin, draw a clear line in the sand. By taking action to prevent state overreach, the commission has sent an unmistakable signal that the era of jurisdictional ambiguity is over." Meanwhile, Arizona has been pursuing a criminal case against Kalshi, but a court has temporarily halted the prosecution, citing the likelihood that federal law will preempt state gambling laws. For more information, read: US CFTC adds New York to list of states being sued over prediction market pushback UPDATE (April 29, 2026, 14:26 UTC): Includes comment from Coinbase.