The Federal Government Once Tried To Restrict Prediction Markets. Now It's Suing States To Save Them.

"A Showdown Over Predictive Power: CFTC Sues Six States in High-Stakes Jurisdictional Battle In a move that's set to shake up the world of prediction markets, the Commodity Futures Trading Commission (CFTC) is taking on six states in a federal lawsuit. The CFTC claims that these states are overstepping their authority by regulating prediction markets such as Kalshi, which allow users to bet on real-world events. The regulatory agency is seeking to "reaffirm its exclusive jurisdiction" over these markets, arguing that they fall under federal oversight. As the CFTC pushes back against state interference, the implications for the future of prediction markets and the balance of power between federal and state governments are likely to be profound."

In a bid to “reaffirm its exclusive jurisdiction” over prediction markets such as Kalshi, the Commodity Futures Trading Commission is suing six states for interfering in federally regulated financial markets.