CFTC backs Kalshi, says prediction market regulation is federal authority

The U.S. Commodity Futures Trading Commission (CFTC) has filed a legal brief supporting prediction market platform Kalshi in a lawsuit in Ohio, The Block reported. The CFTC argued that Ohio's move to classify Kalshi as an unlicensed sports betting platform infringes on federal jurisdiction. CFTC Commissioner Michael Selig stated that prediction markets require federal-level regulation because they operate across state lines. He added that the agency will not allow excessive state government intervention to undermine its authority. The CFTC is also engaged in similar legal disputes over regulatory authority with several other states, including Wisconsin, Illinois, Arizona, and New York.