The Commodity Futures Trading Commission sued New York to prevent the state from enforcing its gambling laws against state-registered stock market exchanges.
The complaint, which has been filed in the Southern District of New York, seeks a declaratory judgment that the government did not act, as well as an injunction to stop the government from banning CFTC-registered markets.
State Fourth in CFTC’s Prediction Market Fight
New York joins Arizona, Connecticut, and Illinois on the agency’s docket. CFTC price sued three other countries earlier this month in a series of conferences focused on the stock market.
A federal judge in Arizona granted the agency a temporary restraining order to stop the state’s lawsuit against platforms regulated by the CFTC. The CFTC has also filed an amicus brief in the Ninth Circuit Court of Appeals for the Supreme Court of Appeals in support of the appellate judges.
New York regulators have previously hit registered platforms with cease-and-desist letters and class action suits. Chairman Michael Selig criticized the state for ignoring the state’s previous record of dealing with those listed by the CFTC. event contracts such as illegal gambling drugs under state licensing laws.
Massachusetts Amicus Filed Same Date
The agency immediately submitted an amicus brief to the Massachusetts Supreme Court in Commonwealth of Massachusetts v. KalshiEx LLC. Attorney General Andrea Campbell previously obtained a preliminary injunction Kalshi by providing sports contracts to Massachusetts customers.
The brief states that the Commodity Exchange Act opposes state regulations that apply to markets regulated by the CFTC. Selig said Congress gave the agency the sole oversight of derivatives, including the prediction market.
Kalshi recently won the Third Circuit Court of Appeals in a similar fashion The story of New Jerseystrengthening the federal preemption argument. Kalshi and Polymarket together face more than a dozen national and ethnic challenges in sports and political events.
Sales Rise as Prediction Markets Go Big
Business activity on both platforms peaked in early 2026, with gaming contracts appearing as a central area between government and government. Google Finance Recent integration of Kalshi data with Polymarket odds, pulling market price predictions beyond economic spreads.
Federal courts in New York and Massachusetts now decide whether the Exchange Act blocks state gambling claims. Their decisions, along with the CFTC’s Ninth Circuit amicus and Arizona restraining order, could shape the country’s laws for a fast-growing business that operates in all regions.
A note Federal Agency Arrests New York for Market Prohibition appeared for the first time BeInCrypto.
