US Regulator Takes Wisconsin to Court Over Prediction Markets Dispute

The Commodity Futures Trading Commission has added Wisconsin to its list of states being sued for attempting to assert jurisdiction over prediction markets, a move that is part of a broader effort to defend its authority in this area. Several states, including New York, have recently taken action against companies such as Kalshi and Crypto.com, accusing them of violating state gaming laws through their betting operations. However, CFTC Chairman Mike Selig has pushed back against these efforts, arguing that his agency has exclusive jurisdiction over the trading of event contracts, which he views as a form of derivatives activity. The dispute has led to a series of lawsuits, with the CFTC suing states such as New York and Wisconsin in an effort to assert its authority. According to Selig, the agency is sending a clear message: states that interfere with the operation of federal law in regulating financial markets will face legal action. The CFTC's actions have been seen as a significant development in the ongoing debate over the regulation of prediction markets, with some viewing them as a decisive move to establish the agency's authority in this area.