Federal Judge Rejects Claim That CFTC Has Sole Control Over Prediction Markets

[chainsniff]

A ruling from a federal court in Ohio has challenged claims that prediction markets fall exclusively under federal regulation. In denying Kalshi’s request for a preliminary injunction, the court said the company failed to demonstrate that Congress intended the Commodity Exchange Act to preempt state sports gambling laws.

The decision contrasts with earlier statements from Michael Selig, chair of the Commodity Futures Trading Commission, who argued that the agency has exclusive jurisdiction over prediction markets. The ruling adds further uncertainty to the regulatory landscape as platforms offering event-based contracts face growing scrutiny from multiple US states.

[nihalsari]

kalshi: we’re CFTC territory
judge: hold my gavel