🏛️ CFTC Challenges New York Over Restrictions on Prediction Markets CFTC Chair Mike Selig stated that the agency is taking legal action to counter New York’s efforts to shut down prediction markets, warning that the state’s move could lead to an “unprecedented, abrupt nationwide shutdown of prediction markets.” The conflict began after New York authorities, including Governor Kathy Hochul and Attorney General Letitia James, sued platforms such as Kalshi, arguing that they operated betting-like activities without a state license. The CFTC maintains a different position, asserting that event-based contracts offered by these markets are federally regulated derivatives, and thus state gambling laws should not override federal oversight. Selig noted that the agency has already filed lawsuits to defend its authority and will continue to oppose attempts to apply state betting regulations to platforms registered under the CFTC’s derivatives framework. The dispute reflects a broader regulatory debate in the United States: whether prediction markets should operate primarily under federal derivatives rules or be subject to state gambling laws. The outcome could define the future of these platforms and establish new boundaries between federal financial regulation and state authority over betting activities.