CFTC sues Wisconsin in agency's legal campaign defending prediction markets authority

Policy Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email CFTC sues Wisconsin in agency's legal campaign defending prediction markets authority The U.S. Commodity Futures Trading Commission added Wisconsin to the list of states it's sued over event-contract jurisdiction, most recently New York. By Jesse Hamilton | Edited by Nikhilesh De Apr 28, 2026, 6:22 p.m. Make preferred on Chairman Mike Selig's U.S. Commodity Futures Trading Commission has sued Wisconsin in a prediction markets standoff. (Jesse Hamilton/CoinDesk) What to know : Wisconsin has become the latest state sued by the U.S. Commodity Futures Trading Commission in a fight over whether states have jurisdiction over prediction markets as gambling platforms or whether the CFTC has solo authority as the federal regulator of derivatives. Last week, Wisconsin sued several of the businesses, including Kalshi, Polymarket and Coinbase, and days later, the CFTC is suing the state in federal court. Wisconsin has joined the growing number of U.S. states being sued by the Commodity Futures Trading Commission as that agency insists on its jurisdiction over prediction markets trading at firms such as Kalshi and Crypto.com . Several states have gone after those businesses, accusing them of violating state gaming laws via the betting taking place on the growing platforms, but CFTC Chairman Mike Selig has led a legal pushback against states including New York , Arizona, Illinois and Connecticut. He's argued that the derivatives regulator, which he leads as the sole member of what's meant to be a five-member commission, has "exclusive jurisdiction" over the trading of event contracts that he argues are an emerging form of the same kinds of derivatives activity long handled by the CFTC. Last week, Wisconsin sued Kalshi, Coinbase, Polymarket, Robinhood and Crypto.com for running unlicensed gambling operations in the state — echoing the claims made against the industry elsewhere. Selig has now responded in the U.S. District Court for the Eastern District of Wisconsin, said he's trying to send a message: "If you interfere with the operation of federal law in regulating financial markets, we will sue you." Also last week, New York sued Coinbase and Gemini over their prediction markets businesses, and days later, the CFTC responded with its own lawsuit against the state. Arizona has been pursuing a criminal case against Kalshi, but a court there paused the prosecution earlier this month, with the judge arguing that the federal agency is likely to be successful making its case that the U.S. law will preempt state gambling laws. Read More: U.S. CFTC adds New York to string of states its suing to stop prediction market pushback Mike Selig Prediction Markets Kalshi Polymarket More For You Polymarket reportedly seeking CFTC approval to reopen main exchange to U.S. traders By Francisco Rodrigues | Edited by Nikhilesh De 1 hour ago If approved, the move would help Polymarket compete with Kalshi in the U.S., and bring more event-trading activity under CFTC regulatory oversight. What to know : Polymarket is seeking CFTC approval to lift the ban on U.S. users from its main overseas prediction market, according to Bloomberg. If approved, the move would help Polymarket compete with Kalshi in the U.S. and bring more event-trading activity under CFTC regulatory oversight. The CFTC must vote on the matter,... Read full story Latest Crypto News World Cup fever: Chiliz expands to Solana and Base to supercharge fan token trading 1 hour ago The age of Agentic Commerce has arrived. Consensus 2026 is where you can experience it IRL 1 hour ago Polymarket reportedly seeking CFTC approval to reopen main exchange to U.S. traders 1 hour ago Riot extends $200 million Coinbase credit facility, and bitcoin weakness could mean more sales 1 hour ago Microsoft says legacy banks are hitting a breaking point as AI takes over the heavy lifting 2 hours ago A crypto coalition releases technical proposal to save Aave users from a massive token exploit 2 hours ago Top Stories CFTC's AI will review U.S. crypto registration applications, chairman tells CoinDesk 5 hours ago Bitcoin loses $77,000, ether, solana slide as Hormuz standoff lifts oil to 3-week high 12 hours ago Industry leaders are pouring hundreds of millions into a rescue plan for Aave users after massive crypto hack 20 hours ago Bulls want bitcoin back above $80,000. Macro says not so fast. 7 hours ago Ondo Finance adds proxy voting for holders of its $700 million tokenized equities 10 hours ago Jack Dorsey's Block nears 9,000 bitcoin in treasury after Q1 addition 8 hours ago