CFTC Sues New York Over State Gambling Rules for Prediction Markets

The CFTC sued New York in federal court to block state gambling laws from being applied to federally regulated prediction markets, as 37 states and Washington D.C. backed a similar enforcement position in the Kalshi dispute. The agency asked for a permanent injunction and said federal law gives it exclusive authority over those markets. CFTC Chairman Michael Selig said state lawsuits against registered exchanges undermine that authority.

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