CFTC Sues Wisconsin Over Prediction Market Jurisdiction

Wisconsin has become the fifth state the CFTC has sued to halt action against prediction markets and assert its jurisdiction.

CFTC Sues Wisconsin Over Prediction Market Jurisdiction

DOGE

$0.07362

2.82%

TRX

$0.3215

2.07%

LINK

$7.17

3.33%

ZEC

$397.59

3.44%

ADA

$0.1438

2.29%

XRP

$1.02

4.08%

ETH

$1,547.59

5.05%

BTC

$59,512.08

2.69%

XMR

$311.54

1.01%

BNB

$559.38

0.47%

XLM

$0.1753

3.84%

SOL

$68.95

1.29%

HYPE

$62.45

0.54%

Written by

Jesse Coghlan

staff editor

Reviewed by

Felix Ng

staff editor

Written by

Jesse Coghlan

staff editor

Reviewed by

Felix Ng

staff editor

CFTC pulls Wisconsin into fight over prediction market jurisdiction

Latest News

Published

Apr 29, 2026

The US Commodity Futures Trading Commission has sued Wisconsin in the agency’s fifth lawsuit against a US state to assert jurisdiction over prediction markets.

The US Commodity Futures Trading Commission on Tuesday sued the state of Wisconsin in the agency’s latest effort to assert jurisdiction over prediction markets after the state sued multiple platforms.

The CFTC said in a

statement

that it filed the lawsuit against Wisconsin “in response to the state’s lawsuits against Kalshi, Polymarket, Crypto.com, Robinhood, and Coinbase, five CFTC-regulated prediction markets.”

“States cannot circumvent the clear directive of Congress,” CFTC Chairman Michael Selig said. “Our message to Wisconsin is the same as to New York, Arizona, and others: if you interfere with the operation of federal law in regulating financial markets, we will sue you.”

It is the agency’s fifth lawsuit against a US state that seeks to halt action against prediction markets. The CFTC

sued New York

on Friday and filed lawsuits against

Arizona, Connecticut, and Illinois

earlier this month after the states sued prediction market platforms.

Michael Selig speaking on stage at Bitcoin 2026 in Las Vegas on Monday. Source:

YouTube

Wisconsin

sued the five companies

on Thursday, and like many US state authorities, argued that prediction markets offering sports-related event contracts are illegal betting that requires state gaming licenses.

It is an assertion the platforms and the CFTC have rebuffed in the past, arguing the contracts are regulated only under federal law.

The CFTC argued in its latest complaint, filed alongside the Justice Department’s Civil Division in a Wisconsin federal court, that it has “exclusive jurisdiction” over the event contracts on prediction markets, regulated as designated contract markets under federal law.

Related:

With no bipartisan leadership, CFTC won't ‘slow down‘ on rulemaking

“Wisconsin’s attempt to criminalize and shut down federally regulated markets intrudes on the exclusive federal scheme Congress designed to oversee national swaps markets,” the CFTC wrote in its complaint.

The agency asked the court to rule that state gambling laws do not apply to CFTC-regulated designated contract markets and issue a permanent injunction prohibiting Wisconsin from taking action against prediction markets.

The CFTC’s complaint also named Wisconsin Governor Anthony Evers, Wisconsin Attorney General Josh Kaul and the Wisconsin Gaming Division and its administrator, John Dillett.

Kaul told Cointelegraph in an emailed statement that “unlawful conduct doesn’t suddenly become permissible just because you call it something different.”

“Tellingly, in other cases, a bipartisan group of AGs has lined up in opposition to the authority the federal government is asserting here. This federal power grab that seeks to limit the ability of states to protect their residents should be rejected,” he added.

The Wisconsin Division of Gaming and Governor Evers’ office did not respond to a request for comment.

Magazine:

How to fix suspected insider trading on Polymarket and Kalshi

Update (April 30, 11:55 pm UTC): This article was updated to add a response from Wisconsin Attorney General Josh Kaul.

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s

Editorial Policy

and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

CFTC

Prediction Markets

Regulation

More on the subject

Australian regulator extends no-action period for crypto licensing

6 minutes ago

Ezra Reguerra

South Korean authorities fine Bithumb $136K over sharing user information overseas

20 hours ago

Turner Wright

Binance faces EU service limits next week as MiCA rules take effect

23 hours ago

Helen Partz

Australian regulator extends no-action period for crypto licensing

6 minutes ago

Ezra Reguerra

South Korean authorities fine Bithumb $136K over sharing user information overseas

20 hours ago

Turner Wright

Binance faces EU service limits next week as MiCA rules take effect

23 hours ago

Helen Partz