CFTC sues Kentucky over prediction market lawsuits
The agency says Kentucky’s 14.25% tax and state gambling rules would effectively bar prediction markets from operating.
- On Tuesday, the Commodity Futures Trading Commission filed a federal lawsuit against Kentucky, naming Governor Andrew Beshear and Attorney General Russell Coleman, to block state enforcement against prediction markets Kalshi and Polymarket.
- Last week, Coleman sued the firms, alleging they operate unlicensed, illegal sportsbooks in violation of state gambling and sports wagering laws.
- The CFTC argued these event contracts are 'swaps' under federal law and criticized a 14.25% state tax, stating it essentially makes operation in Kentucky impossible.
- Kentucky marks the ninth state the CFTC has targeted to defend exclusive jurisdiction, as 20 states are now actively involved in litigation against these prediction market platforms.
- In May, President Donald Trump provided moral support to the agency, stating it was 'critically important' that the regulator remain the sole authority on prediction markets.
12 Articles
12 Articles
CFTC Sues Kentucky in Growing Prediction Market State Scramble
The federal agency that regulates derivatives trading sued Kentucky on Tuesday, claiming the state led by a mixed Democratic-Republican governor and attorney general is overstepping on its turf, the newest legal scuffle for control of the booming prediction markets industry.
CFTC sues Kentucky in bid to stop state’s prediction markets crackdown
The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Kentucky on Tuesday in a bid to block the Republican state from trying to regulate CFTC-registered prediction markets via a new state law. In a press release announcing its latest legal action against a state, the federal agency cited Kentucky’s civil enforcement actions in state court against prediction market platforms, as well as the new law that looks to charge those ope…
CFTC Sues 9 States Over Prediction Markets, Kentucky Latest Target
The CFTC just filed against Kentucky. That’s nine states now caught in the regulator’s widening legal sweep over prediction markets… Read the original on CFTC Sues 9 States Over Prediction Markets, Kentucky Latest Target. For more crypto news and analysis, visit TheCurrencyAnalytics.com.
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