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The U.S. CFTC supports Kalshi's lawsuit, requesting the court to confirm its regulatory authority over prediction markets.
BlockBeats News, May 13 — The U.S. Commodity Futures Trading Commission (CFTC) has sided with the company in the legal dispute with Ohio at Kalshi and has petitioned the appellate court to confirm the agency’s jurisdiction over prediction markets.
The CFTC submitted a “friend of the court” brief to the Sixth Circuit Court of Appeals on Tuesday, accusing Ohio of “overstepping jurisdiction” because the state regulators last year demanded that Kalshi cease offering sports event contracts locally, claiming they constitute unlicensed sports betting. Kalshi subsequently sued Ohio’s relevant agencies in October, attempting to prevent enforcement actions by the state casino regulatory commission and the attorney general, but the request was dismissed by a federal court in March of this year, prompting Kalshi to appeal.
CFTC Chairman Mike Selig stated, “The federal district court in Ohio made an improperly narrow interpretation of the Commission’s jurisdiction, and we are requesting the appellate court to correct this error. As I have repeatedly said, the CFTC will not allow overly aggressive state governments to undermine the agency’s long-standing regulatory authority over these markets.”