The CFTC sues Wisconsin: defending its "exclusive jurisdiction" over prediction markets and fighting against the state's ban.

According to Huoxun Finance, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against the state of Wisconsin on Tuesday, accusing the state's governor, attorney general, and other state officials of attempting to restrict prediction market platforms through state law. Wisconsin recently sued platforms such as Coinbase, Robinhood, Crypto.com, Polymarket, and Kalshi, claiming their sports event contracts constituted "public nuisance." The CFTC emphasized its exclusive jurisdiction over prediction markets (event contracts), arguing that the state government's criminalization of federally regulated markets violates the national swap market regulatory system established by Congress, and requested the court to issue an injunction confirming that federal law takes precedence over Wisconsin's injunction within the CFTC's regulatory purview.