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

The Commodity Futures Trading Commission has added Wisconsin to its growing list of states being sued over the agency's jurisdiction of prediction markets, which include firms like Kalshi and Crypto.com. A number of states, including New York, have taken action against these companies, alleging that they are violating state gaming laws through their betting operations. However, CFTC Chairman Mike Selig has been leading a legal challenge against these states, arguing that the agency has exclusive jurisdiction over the trading of event contracts, which he believes are 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. In response, Selig has filed a lawsuit in the US District Court for the Eastern District of Wisconsin, stating that he aims 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 filed a lawsuit against 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 filed in New York and Wisconsin, draw a clear line in the sand. By taking action to block state interference, the commission has sent a clear signal: The era of jurisdictional uncertainty is over." Arizona has been pursuing a criminal case against Kalshi, but a court has paused the prosecution, with the judge suggesting that federal law is likely to preempt state gambling laws. For more information, read: US CFTC adds New York to list of states being sued over prediction market regulations UPDATE (April 29, 2026, 14:26 UTC): Includes comment from Coinbase.