The Commodity Futures Trading Commission has sued Wisconsin after the state filed civil cases against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, asserting felony violations of state law. The Commission argues that Congress gave it exclusive jurisdiction over derivative products including event contracts traded on designated contract markets, and that states cannot use gambling laws to regulate CFTC-regulated prediction markets. The Wisconsin case follows a separate Commission lawsuit against New York after that state sued prediction markets. The CFTC said it has also brought cases against Connecticut, Illinois, and New York, and filed amicus briefs in the U.S. Court of Appeals for the Ninth Circuit and the Supreme Judicial Court of Massachusetts. In Arizona, a federal court recently issued a temporary restraining order in a CFTC case that blocked a criminal prosecution against a CFTC-regulated company.
Commodity Futures Trading Commission 2026-04-28
Commodity Futures Trading Commission sues Wisconsin over state action against five CFTC regulated prediction markets
The Commodity Futures Trading Commission has sued the State of Wisconsin after it brought civil cases against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, arguing that Congress granted the Commission exclusive jurisdiction over derivative products including event contracts traded on designated contract markets and that states cannot apply gambling laws to CFTC-regulated prediction markets. The action follows similar CFTC litigation against New York and interventions in Connecticut, Illinois, Arizona, and Massachusetts challenging state efforts to regulate prediction markets.