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The CFTC defends prediction markets against state bans, citing federal oversight and market integrity.
The Commodity Futures Trading Commission (CFTC), under Chairman Michael Selig, is defending prediction markets like Kalshi and Polymarket in a legal battle with several states, asserting federal authority over these platforms as regulated derivatives.
The CFTC argues that state attempts to ban them undermine its exclusive oversight and threaten financial market integrity.
States including Nevada and Utah contend the platforms operate as unlicensed gambling, particularly for sports betting, and have sued or issued enforcement actions.
The CFTC has filed a "friend of the court" brief in the Ninth Circuit, supporting the companies’ right to operate nationwide.
The outcome may reshape federal-state regulatory power over financial prediction markets, with potential implications for gambling laws and investments tied to President Trump’s family.
La CFTC defiende a los mercados de predicción contra las prohibiciones estatales, citando la supervisión federal y la integridad del mercado.