US Regulator Takes Wisconsin to Court Over Prediction Markets Dispute

The US Commodity Futures Trading Commission has added Wisconsin to its list of defendants in a series of lawsuits aimed at asserting the agency's jurisdiction over prediction markets. This move comes after Wisconsin recently sued several firms, including Kalshi and Crypto.com, for allegedly operating unlicensed gambling operations within the state. The CFTC, led by Chairman Mike Selig, claims it has exclusive authority over the trading of event contracts, which are considered a form of derivatives. The agency has been pushing back against states, including New York, Arizona, and Illinois, that have attempted to regulate or shut down these platforms. In response to Wisconsin's lawsuit, the CFTC has filed a countersuit, with Chairman Selig stating that the agency will take action against any state that interferes with federal law in regulating financial markets. This development is part of a broader effort by the CFTC to establish its authority over prediction markets and prevent states from imposing their own regulations on these platforms.