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

On May 13, the U.S. Commodity Futures Trading Commission (CFTC) sided with Kalshi in its legal dispute with Ohio and requested the appellate court to confirm the agency’s jurisdiction over prediction markets. On Tuesday, the CFTC submitted an amicus brief to the Sixth Circuit Court of Appeals, alleging that Ohio has overstepped its jurisdiction by demanding that Kalshi cease offering sports event contracts locally, claiming they constitute unlicensed sports betting. Kalshi subsequently sued Ohio’s relevant departments in October, attempting to prevent the state casino control board and the state attorney general from taking enforcement action, but this request was dismissed by a federal court in March, 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 asking the appellate court to correct this error. As I have said many times, the CFTC will not allow overly aggressive state governments to undermine the agency’s long-standing regulatory authority in these markets.’