CFTC sues 3 states to block 'overzealous' regulation of prediction markets

The federal regulator argues it holds sole authority over Kalshi and other platforms under the Commodity Exchange Act

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The Commodity Futures Trading Commission is seeking federal court orders against Arizona, Connecticut, and Illinois that would prevent those states from enforcing their gambling statutes against prediction market platforms.

The agency argued Thursday that Congress granted it exclusive authority to regulate event contracts under the Commodity Exchange Act, and that state-level enforcement creates a fragmented patchwork of conflicting obligations. 

"The CFTC will continue to safeguard its exclusive........

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