CFTC sues Wisconsin in agency's legal campaign defending prediction markets authority

The U.S. Commodity Futures Trading Commission added Wisconsin to the database of states it's sued implicit event-contract jurisdiction, astir precocious New York.

Apr 28, 2026, 6:22 p.m.

Wisconsin has joined the increasing fig of U.S. states being sued by the Commodity Futures Trading Commission arsenic that bureau insists connected its jurisdiction implicit prediction markets trading astatine firms specified arsenic Kalshi and Crypto.com.

Several states person gone aft those businesses, accusing them of violating authorities gaming laws via the betting taking spot connected the increasing platforms, but CFTC Chairman Mike Selig has led a ineligible pushback against states including New York, Arizona, Illinois and Connecticut. He's argued that the derivatives regulator, which helium leads arsenic the sole subordinate of what's meant to beryllium a five-member commission, has "exclusive jurisdiction" implicit the trading of lawsuit contracts that helium argues are an emerging signifier of the aforesaid kinds of derivatives enactment agelong handled by the CFTC.

Last week, Wisconsin sued Kalshi, Coinbase, Polymarket, Robinhood and Crypto.com for moving unlicensed gambling operations successful the authorities — echoing the claims made against the manufacture elsewhere.

Selig has present responded successful the U.S. District Court for the Eastern District of Wisconsin, said he's trying to nonstop a message: "If you interfere with the cognition of national instrumentality successful regulating fiscal markets, we volition writer you."

Also past week, New York sued Coinbase and Gemini implicit their prediction markets businesses, and days later, the CFTC responded with its ain suit against the state.

Arizona has been pursuing a transgression lawsuit against Kalshi, but a tribunal determination paused the prosecution earlier this month, with the justice arguing that the national bureau is apt to beryllium palmy making its lawsuit that the U.S. instrumentality volition preempt authorities gambling laws.

Read More: U.S. CFTC adds New York to drawstring of states its suing to halt prediction marketplace pushback