The CFTC files a prediction market lawsuit against New York, seeking to prohibit the enforcement of state laws

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CryptoNews reports that the CFTC filed a lawsuit on April 24 in the Southern District of New York, seeking a permanent injunction to prevent the State of New York from enforcing its gambling laws against federally registered prediction market exchanges. CFTC Chairman Michael Selig stated that CFTC-registered exchanges face lawsuits from various states attempting to restrict Americans’ access to event contracts and weaken CFTC’s regulatory authority. The New York State lawsuit stems from the Attorney General’s charges against Coinbase and Gemini, accusing their platforms of operating as unlicensed gambling without meeting state gaming license requirements. Attorney General Letitia James and Governor Kathy Hochul responded by saying that New York’s gambling laws are designed to protect consumers and vowed to defend state laws. The CFTC also filed lawsuits in April against Arizona, Connecticut, and Illinois, claiming these states are exceeding the CFTC’s jurisdiction. If the CFTC wins, prediction markets will operate under a single federal regulatory framework without state-by-state licensing, significantly expanding their market.

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