CFTC sues Kentucky over actions against prediction markets, making it first red state to face federal scrutiny
The commission has now sued nine states in its battle to defend what it sees as its exclusive right to regulate event contracts.
TL;DR
- The CFTC is suing Kentucky for taking action against prediction market platforms.
- Kentucky had previously sued Kalshi and Polymarket, asserting they were operating illegal gambling platforms.
- This is the ninth state the CFTC has sued in its ongoing dispute over jurisdiction of prediction markets.
- Kentucky is the first state with a Republican attorney general to be sued by the CFTC in this matter.
- States argue event contracts are similar to sports betting, which they regulate.
- The CFTC argues these contracts are swaps and fall under its exclusive jurisdiction.