🏛️ CFTC challenges New York over prediction market restrictions CFTC Chairman Mike Selig said the agency is taking legal action to stop New York’s efforts to shut down prediction markets, warning that state intervention could lead to a “sudden and unprecedented nationwide closure of prediction markets.” The dispute began after New York officials, including Governor Kathy Hochul and Attorney General Letitia James, sued platforms such as Kalshi, arguing that they were operating unlicensed gambling activities under state law. ripple:native The CFTC disagrees with that interpretation, arguing that event contracts offered through prediction markets are federally regulated derivatives and that state gambling laws cannot override federal oversight of registered platforms. Selig stated that the CFTC has already filed lawsuits to defend its authority and will continue challenging attempts by states to apply gambling regulations to prediction market operators. The conflict highlights a broader regulatory debate in the United States: whether prediction markets should be governed primarily under federal derivatives rules or treated as state-regulated gambling activities. The outcome could influence the future of prediction platforms, defining the balance between federal financial regulation and state gaming authority.