CFTC backs Kalshi in appeal, asserting federal jurisdiction over prediction market oversight

Odaily reported that the U.S. CFTC has filed an amicus brief with the U.S. Court of Appeals for the Sixth Circuit, supporting Kalshi in its appeal against Ohio and arguing that prediction markets should fall under CFTC jurisdiction. The CFTC stated that Ohio's previous demand for Kalshi to cease offering sports event contracts constituted an "overreach of jurisdiction." The CFTC noted that if state governments can restrict sports event contracts traded on Designated Contract Markets (DCMs), its long-standing regulatory authority over event contracts, swaps, and binary options markets could be affected. The outcome of this case will also impact prediction market platforms such as Kalshi and Polymarket. (Cointelegraph)