US CFTC sues New York to assert exclusive authority over prediction markets

12 articles · Updated · CoinDesk · Apr 24

The CFTC filed suit in the Southern District of New York after state officials targeted Coinbase, Gemini, and previously KalshiEx, alleging violations of state gambling laws.
The federal regulator argues that only the CFTC has jurisdiction over event contracts on federally regulated exchanges, seeking to preempt state actions and block state-level enforcement.
Thirty-seven state attorneys general, including New York's Letitia James, oppose the CFTC's stance, warning it threatens states' ability to protect citizens; similar lawsuits have been filed against Arizona, Connecticut, and Illinois.

Will the Supreme Court ultimately have to decide if your bet is a financial product?

As states crack down, is the explosive growth of prediction markets already coming to an end?

Can new technology that turns anything into a tradable asset be effectively regulated?

Could betting on real-world outcomes become a mainstream tool for managing financial risk?

Are prediction markets a wise forecasting tool or just a dangerous new form of gambling?