CFTC supports Kalshi against Ohio, prediction market jurisdiction dispute continues to escalate

Odaily reported that the U.S. Commodity Futures Trading Commission (CFTC) has filed an amicus brief with the U.S. Court of Appeals for the Sixth Circuit, supporting prediction market platform Kalshi and contesting a lawsuit previously filed against it by Ohio.

The state of Ohio argued that Kalshi's prediction market business constitutes unlicensed sports betting; the CFTC, however, asserts that the relevant markets fall under federal regulatory authority and that states lack the power to intervene beyond their jurisdiction.

CFTC Chairman Michael Selig stated that the Ohio district court's previous interpretation of the CFTC’s jurisdiction was "overly narrow" and urged the appeals court to correct it.

In recent months, the CFTC has taken legal action against Wisconsin, Illinois, Arizona, Connecticut, and New York to assert its regulatory authority over prediction markets. As platforms like Kalshi and Polymarket gain popularity, the dispute over regulatory boundaries between federal and state governments continues to widen.