CFTC, Kalshi Sue Over Prediction Market Jurisdiction as Illinois Joins Expanding State Fight

3 articles · Updated · Compliance Week · Jul 20

Illinois became the latest front in the prediction-market turf war, with Kalshi suing the state after regulators moved to assert authority over the company.
The CFTC also filed a new lawsuit against another state, escalating a parallel federal pushback against state efforts to police the still-emerging sector.
Those twin cases add to a growing stack of legal battles over whether prediction markets fall under federal commodities oversight or state jurisdiction.
The dispute now centers on who will set the rules for a fast-developing market whose regulatory boundaries remain unsettled.

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