CFTC Sues Wisconsin Over Prediction Markets Jurisdiction in Federal Law Fight
Agency's fifth lawsuit against US state as federal-state conflict over prediction markets escalates
L'essentiel
- The CFTC filed a lawsuit against Wisconsin on Tuesday—the agency's fifth such action against a US state—asserting exclusive federal jurisdiction over prediction markets.
- The suit responds to Wisconsin's lawsuits against five CFTC-regulated platforms (Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase), with Chairman Michael Selig warning that states cannot circumvent Congressional authority on financial market regulation.
Résumé généré par IA
Pourquoi c'est important
Prediction markets have grown significantly, with platforms like Kalshi and Polymarket offering event contracts on sports and political outcomes. The CFTC has asserted jurisdiction over these markets as designated contract markets under federal law, while states argue they constitute illegal gambling requiring state gaming licenses.
The US Commodity Futures Trading Commission on Tuesday sued the state of Wisconsin in the agency's latest effort to assert jurisdiction over prediction markets after the state sued multiple platforms.
The CFTC said in a statement that it filed the lawsuit against Wisconsin "in response to the state's lawsuits against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, five CFTC-regulated prediction markets."
"States cannot circumvent the clear directive of Congress," CFTC Chairman Michael Selig said. "Our message to Wisconsin is the same as to New York, Arizona, and others: if you interfere with the operation of federal law in regulating financial markets, we will sue you."
It is the agency's fifth lawsuit against a US state that seeks to halt action against prediction markets. The CFTC sued New York on Friday and filed lawsuits against Arizona, Connecticut, and Illinois earlier this month after the states sued prediction market platforms.
Michael Selig speaking on stage at Bitcoin 2026 in Las Vegas on Monday. Source: YouTube
Wisconsin sued the five companies on Thursday, and like many US state authorities, argued that prediction markets offering sports-related event contracts are illegal betting that requires state gaming licenses. It is an assertion the platforms and the CFTC have rebuffed in the past, arguing the contracts are regulated only under federal law.
The CFTC argued in its latest complaint, filed alongside the Justice Department's Civil Division in a Wisconsin federal court, that it has "exclusive jurisdiction" over the event contracts on prediction markets, regulated as designated contract markets under federal law.
Related: With no bipartisan leadership, CFTC won't 'slow down' on rulemaking
"Wisconsin's attempt to criminalize and shut down federally regulated markets intrudes on the exclusive federal scheme Congress designed to oversee national swaps markets," the CFTC wrote in its complaint.
The agency asked the court to rule that state gambling laws do not apply to CFTC-regulated designated contract markets and issue a permanent injunction prohibiting Wisconsin from taking action against prediction markets.
The CFTC's complaint also named Wisconsin Governor Anthony Evers, Wisconsin Attorney General Josh Kaul and the Wisconsin Gaming Division and its administrator, John Dillett.
The Wisconsin Department of Justice, the state's Division of Gaming and Governor Evers' office were contacted for comment.
À surveiller
Perspective IA — des possibilités, pas des certitudes
Additional states may file similar lawsuits against prediction markets, triggering more CFTC responses
Très probable · En quelques semaines
The conflict may ultimately require Supreme Court resolution to establish clear federal-state jurisdiction boundaries
Probable · En quelques mois
Questions ouvertes
- Will other states continue to sue prediction market platforms?
- Will this conflict reach the Supreme Court?
- How will the federal courts rule on state vs federal jurisdiction?
