The CFTC Supports Kalshi Lawsuit, Seeks Court Confirmation of Regulatory Authority Over Prediction Markets

BlockBeats News, May 13th - The United States Commodity Futures Trading Commission (CFTC) has sided with Kalshi in its legal dispute with the state of Ohio and has asked the appeals court to confirm the regulatory agency's jurisdiction over the prediction market.

The CFTC filed an "amicus curiae brief" with the Sixth Circuit Court of Appeals on Tuesday, alleging that Ohio had "overstepped its jurisdiction" when the state regulatory agency last year demanded that Kalshi cease offering contracts on sporting events, claiming it was unlicensed sports betting. Kalshi then sued Ohio authorities in October to prevent the state's casino control commission and attorney general from taking enforcement actions, but the request was rejected by a federal court in March this year, prompting Kalshi to appeal.

CFTC Chairman Mike Selig stated, "The federal district court in Ohio made an improper, narrowly tailored interpretation of the Commission's jurisdiction, and we are asking the appeals court to correct this mistake. As I have said many times, the CFTC will not allow overzealous state governments to undermine the agency's long-standing regulatory authority in these markets."