"The CFTC will continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators."
"This is not the first time states have tried to impose inconsistent and contrary obligations on market participants, but Congress specifically rejected such a fragmented patchwork of state regulations."
The CFTC is suing Illinois, Arizona, and Connecticut for trying to regulate prediction markets like Kalshi and Polymarket as illegal gambling. The CFTC defines these markets as designated contract markets where futures contracts are traded, which fall under its jurisdiction. States have challenged this interpretation, with Nevada and Arizona filing lawsuits against Kalshi for operating without proper licenses. Illinois and Connecticut have also issued cease-and-desist letters to Kalshi. The CFTC aims to protect its regulatory authority and market participants from state overreach.
Read at Engadget
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