The U.S. Commodity Futures Trading Commission has filed a lawsuit against New York, asserting its authority over prediction markets amid state-level legal actions against firms like Coinbase and Gemini. This lawsuit follows New York's previous attempts to regulate prediction market activities as gambling.
The CFTC's lawsuit, filed in the U.S. District Court for the Southern District of New York, argues that federal law grants it exclusive jurisdiction over commodity futures and related markets. New York recently sued cryptocurrency exchanges Coinbase and Gemini, claiming their prediction market contracts violate state gambling laws. Additionally, New York had previously targeted Kalshi, demanding it cease operations related to sports wagering. On the same day, 37 state attorneys general, including New York's, supported a legal brief in a related case in Massachusetts.