CFTC Backs Kalshi in Prediction Market Jurisdiction Fight

The Commodity Futures Trading Commission (CFTC) has intervened in a legal battle between prediction market Kalshi and the state of Ohio, arguing that federal law grants the agency exclusive jurisdiction over event contracts. In a friend-of-the-court brief filed with the Sixth Circuit Court of Appeals, the CFTC asserts that state-level restrictions on prediction markets could undermine federal regulatory authority. This move signals a potential shift toward clearer federal oversight of prediction platforms, which could benefit regulated operators like Kalshi. However, the outcome remains uncertain as the court weighs state versus federal powers. The case highlights the growing tension between innovative financial products and existing regulatory frameworks, with implications for the broader crypto ecosystem.

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