CFTC sues Rhode Island over actions against prediction markets
It marks the seventh state the commission has sued in a dispute over who has the right to regulate event contract platforms.
TL;DR
- The CFTC has sued Rhode Island over the state's actions against prediction market platforms Kalshi and Polymarket.
- This is the seventh state the CFTC has sued in a dispute regarding the regulation of prediction markets.
- Rhode Island alleges the platforms violate state sports-betting laws, while the CFTC claims exclusive federal jurisdiction over event contracts.
- The CFTC is seeking to intervene in Rhode Island's existing lawsuit and has filed its own complaint against the state.
- 18 states are involved in litigation over prediction markets, with Minnesota seeking an outright ban.
- President Donald Trump has stated the commission's exclusive jurisdiction must be maintained.
- The CFTC has only sued states with Democratic attorneys general, including Rhode Island's Peter Neronha.