The US CFTC has rescinded a 1998 policy that prevented settlements if defendants denied allegations. This change, mirroring the SEC's move, offers more flexibility in enforcement actions, particularly for crypto firms who argued the policy infringed free speech.
The CFTC filed a lawsuit against Wisconsin on Tuesday, becoming the fifth state sued by the federal regulator for attempting to regulate prediction markets through state gambling laws. The lawsuits target Polymarket, Kalshi, Coinbase, Robinhood, and Crypto.com over sports-related prediction markets. States argue these wagers are illegal gambling, while the CFTC contends they are event contracts under federal jurisdiction. The conflict spans both Democratic and Republican-led states, with the CFTC chaired by Trump appointee Mike Selig.
