The federal government is telling states to back off attempts to regulate prediction markets after several states took legal action to block the federally regulated markets from operating in their states.
At the center of the dispute is whether states or the federal government should have the final say over prediction markets, which allow people to bet on real-world outcomes such as sports and elections. As states ramp up enforcement against these markets, the CFTC asserts its exclusive authority, setting up a legal battle that could determine the future of event-based trading nationwide.
The Commodity Futures Trading Commission filed lawsuits challenging the actions of Arizona, Connecticut, and Illinois against Kalshi and other federally regulated operators.
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