U.S. CFTC adds New York to string of states its suing to stop prediction market pushback

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email U.S. CFTC adds New York to string of states its suing to stop prediction market pushback The federal regulator has been suing states that seek to curtail prediction markets activity and claim it should be deemed state-regulated gaming. By Jesse Hamilton | Edited by Nikhilesh De Updated Apr 25, 2026, 1:18 a.m. Published Apr 24, 2026, 10:09 p.m. Make preferred on Chairman Mike Selig's CFTC has sued New York to defend its prediction markets jurisdiction. (Jesse Hamilton/CoinDesk) What to know : The U.S. derivatives regulator, the Commodity Futures Trading Commission, just added New York to its growing list of states it's suing to counter their own legal pursuit of the prediction markets industry. New York moved earlier this week to target platforms run by Coinbase and Gemini, so the CFTC is again suing to insist that the federal agency is the proper regulator of such businesses, not the states. The U.S. Commodity Futures Trading Commission sued New York on Friday in its latest action to shield what the agency has argued is its unassailable nationwide regulatory authority over prediction market firms. Earlier this week, New York sued Coinbase and Gemini , arguing that their prediction market contracts violated state gambling laws. And last year, the state had similarly targeted Kalshi, demanding it cease its sports wagering platform. The CFTC, in its role as the federal derivatives regulator, has staked out a position that the states have no business interfering with those firms. The agency's suit in the U.S. District Court for the Southern District of New York argues that federal law "designates the CFTC as the federal agency with 'exclusive jurisdiction' over the regulation of commodity futures, options, and swaps traded on federally regulated exchanges," and that includes these CFTC-registered designated contract markets. State law is effectively preempted, according to the synchronized positions of the regulator and the growing industry it's seeking to protect. But also on Friday, 37 state attorneys general — including New York Attorney General Letitia James — signed onto a legal brief in one of the Kalshi legal fights in Massachusetts to argue that "Kalshi’s aggressive theory of preemption threatens the States’ longstanding ability to protect their citizens in this area." CFTC Chairman Mike Selig has made this one of his most prominent initiatives since taking over the agency four months ago, and his agency has similarly sued Arizona, Connecticut and Illinois, claiming event contracts are derivatives instruments within federal jurisdiction. "CFTC-registered exchanges have faced an onslaught of state lawsuits seeking to limit Americans’ access to event contracts and undermine the CFTC’s sole regulatory jurisdiction over prediction markets," he said in a statement. In their own statement later Friday, James and New York Governor Kathy Hochul said they were enforcing state laws on gambling. “Once again, this administration is prioritizing big corporations over consumers and New Yorkers’ best interests. New York’s gambling laws are designed to protect consumers, whether they are placing bets in a prediction market or a casino. When gambling platforms, including prediction markets, violate our laws, we will not hesitate to hold them accountable. We look forward to continuing to defend our laws in court.” UPDATE (April 25, 2026, 01:20 UTC): Adds James and Hochul statement. Prediction Markets Kalshi Coinbase Gemini More For You Trump defends crypto legislation at private event featuring boxer Mike Tyson, Tether CEO By Helene Braun , Jesse Hamilton | Edited by Nikhilesh De 10 hours ago President Donald Trump, at a Mar-a-Lago gathering of investors in his self-branded memecoin, said crypto is mainstream and banks should back off the industry's bill. What to know : At a private Mar-a-Lago event for top $TRUMP memecoin holders, President Donald Trump vowed he would not let banks derail the long-delayed Clarity Act on U.S. crypto market structure. The Clarity Act, intended to define how digital assets are regulated, has been stalled by disputes between banks and crypto firms... Read full story Latest Crypto News Crypto is built for AI agents, not humans, says Alchemy's CEO 10 hours ago Trump defends crypto legislation at private event featuring boxer Mike Tyson, Tether CEO 10 hours ago BlackRock’s bitcoin ETF just hit a massive milestone that proves crypto is now a mainstream bet 10 hours ago How Anthropic’s Mythos model is forcing the crypto industry to rethink everything about security 12 hours ago Bitcoin falls after Trump reportedly canceled Steve Witkoff and Jared Kushner's Iran-talks trip 13 hours ago Mike Tyson, Tether CEO, Cathie Wood among speakers at Trump's 'most exclusive' crypto conference 13 hours ago Top Stories Clock is ticking for bitcoin to prevent quantum threat as it could drain 6.9 million BTC including Satoshi’s 19 hours ago Coinbase’s Jesse Pollak says AI agents are the next big wave for crypto payments 16 hours ago Michael Saylor says the bitcoin winter is over. Some experts agree, with caveats. Apr 24, 2026 Bitcoin at $40,000 would be 'near-unprecedented' statistical outcome, analyst says 14 hours ago SpaceX's $75 billion IPO could drain the liquidity that's helping lift bitcoin and crypto Apr 24, 2026 Trump's DOJ drops probe that stood in way of president's pick to run Federal Reserve Apr 24, 2026