U.S. CFTC adds New York to string of states its suing to stop prediction market pushback

The national regulator has been suing states that question to curtail prediction markets enactment and assertion it should beryllium deemed state-regulated gaming.

Apr 24, 2026, 10:09 p.m.

The U.S. Commodity Futures Trading Commission sued New York connected Friday successful its latest enactment to shield what the bureau has argued is its unassailable nationwide regulatory authorization implicit prediction marketplace firms.

Earlier this week, New York sued Coinbase and Gemini, arguing that their prediction marketplace contracts violated authorities gambling laws. And past year, the authorities had likewise targeted Kalshi, demanding it cease its sports wagering platform.

The CFTC, successful its relation arsenic the national derivatives regulator, has staked retired a presumption that the states person nary concern interfering with those firms. The agency's suit successful the U.S. District Court for the Southern District of New York argues that national instrumentality "designates the CFTC arsenic the national bureau with 'exclusive jurisdiction' implicit the regularisation of commodity futures, options, and swaps traded connected federally regulated exchanges," and that includes these CFTC-registered designated declaration markets. State instrumentality is efficaciously preempted, according to the synchronized positions of the regulator and the increasing manufacture it's seeking to protect.

But besides connected Friday, 37 authorities attorneys wide — including New York Attorney General Letitia James — signed onto a ineligible brief successful 1 of the Kalshi ineligible fights successful Massachusetts to reason that "Kalshi’s assertive mentation of preemption threatens the States’ longstanding quality to support their citizens successful this area."

CFTC Chairman Mike Selig has made this 1 of his astir salient initiatives since taking implicit the bureau 4 months ago, and his bureau has likewise sued Arizona, Connecticut and Illinois, claiming lawsuit contracts are derivatives instruments wrong national jurisdiction.

"CFTC-registered exchanges person faced an onslaught of authorities lawsuits seeking to bounds Americans’ entree to lawsuit contracts and undermine the CFTC’s sole regulatory jurisdiction implicit prediction markets," helium said successful a statement.