Trump administration sues states and backs prediction markets in jurisdiction fight
Updated
Updated · BroadbandBreakfast.com · May 5
Trump administration sues states and backs prediction markets in jurisdiction fight
11 articles · Updated · BroadbandBreakfast.com · May 5
The CFTC filed an amicus brief in Massachusetts and sued Arizona, Connecticut, Illinois, New York and Wisconsin, seeking to protect Kalshi and Polymarket from state regulation.
Massachusetts sued Kalshi in September 2025, saying its event contracts resembled unlicensed sports betting and were offered to under-21 users; Attorney General Andrea Campbell won a preliminary injunction in January.
Chairman Michael Selig, the CFTC's sole commissioner, says federal law gives the agency exclusive oversight of derivatives markets, while related litigation involving Crypto.com in Nevada and a proposed rule remain unresolved.
With billions wagered, who protects users as federal and state regulators go to war?
As insider trading hits these markets, can a single regulator truly ensure fairness?
Are prediction markets innovative financial tools or simply unregulated gambling in disguise?