The Commodity Futures Trading Commission (CFTC) filed a lawsuit against the government of New Mexico, including Governor Michelle Lujan Grisham. The federal regulator seeks to block the state’s attempts to apply its local gaming laws against the prediction market platform Kalshi. This legal action responds to a previous lawsuit by New Mexico, which accused Kalshi of offering illegal sports betting to its residents.
This clash marks a new chapter in the aggressive strategy of the CFTC, under the Trump administration and led by Michael Selig, to consolidate its exclusive jurisdiction over financial derivatives and prediction contracts. The dispute is crucial for the crypto market and regulated exchanges, as it will define whether platforms must submit to unified federal regulations or fracture before the gaming laws of multiple states like New York, Illinois, or Wisconsin.
The next legal step will be resolved in the U.S. District Court for the District of New Mexico, where the CFTC will defend the Commodity Exchange Act (CEA) as the ultimate authority over these markets.
Source: https://goo.su/qcUvM
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