US Regulator Takes Wisconsin to Court Over Prediction Market Dispute

The Commodity Futures Trading Commission has added Wisconsin to its list of defendants in an ongoing battle to assert its authority over prediction markets. This move comes as several states, including Wisconsin, have targeted companies like Kalshi and Crypto.com, alleging they are operating in violation of local gaming laws. However, CFTC Chairman Mike Selig argues that his agency has exclusive jurisdiction over these markets, citing their classification as derivatives. Wisconsin recently sued several companies for operating unlicensed gambling operations, prompting the CFTC to respond with a lawsuit of its own. The regulator's actions are part of a broader effort to establish clear boundaries and assert its authority in the face of state-level challenges. This development follows similar lawsuits against New York and other states, with the CFTC aiming to protect the operation of federal law in regulating financial markets.