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flag The CFTC defends prediction markets against state bans, citing federal oversight and market integrity.

flag 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. flag The CFTC argues that state attempts to ban them undermine its exclusive oversight and threaten financial market integrity. flag States including Nevada and Utah contend the platforms operate as unlicensed gambling, particularly for sports betting, and have sued or issued enforcement actions. flag The CFTC has filed a "friend of the court" brief in the Ninth Circuit, supporting the companies’ right to operate nationwide. flag 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.

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