CFTC Sues Arkansas to Defend Federal Jurisdiction Over Prediction Markets
WASHINGTON — The U.S. Commodity Futures Trading Commission (CFTC) announced on November 13 that it has filed a lawsuit against Arkansas to block the state's attempts to halt event-contract trading and impose up to hundreds of millions of dollars in civil penalties on CFTC-registered exchanges. Arkansas is the 11th state the CFTC has sued to vindicate federal sovereign interests.
According to the CFTC, Arkansas is bringing a civil enforcement action in state court against Kalshi, a CFTC-designated contract market. The CFTC said Arkansas's efforts to obstruct the functions of CFTC-registered exchanges operating lawfully under the Commodity Exchange Act are preempted by federal law.
“As prediction markets continue to prove their value in being useful for risk management and providing the public with valuable information about the future, Arkansas seeks to shut down event contracts ranging from sports and politics to other important world events,” said Chairman Michael S. Selig. “The CFTC will continue to defend its sole jurisdiction over these federally regulated markets as granted by Congress under the Commodity Exchange Act, and the Commission will not let state interference thwart its regulatory efforts and destroy federally regulated markets.”
The CFTC said it has also submitted amicus briefs in four federal Courts of Appeal and one state Supreme Court. Arkansas's enforcement against Kalshi began on the state side: earlier this month the Arkansas attorney general sued the prediction market Kalshi, alleging it operates illegal gambling, as GSM previously reported. The CFTC's suit against the state marks a further escalation of the federal-state fight over who regulates prediction markets, which now moves to the courts.
Related: Arkansas Attorney General Sues Prediction Market Kalshi, Alleging Illegal Gambling
(Source: U.S. Commodity Futures Trading Commission)
Source: U.S. Commodity Futures Trading Commission
Published by GSM · USA (original Chinese edition)
Photo: 图：位于华盛顿的美国商品期货交易委员会（CFTC）总部入口，墙上可见 CFTC 徽标与名牌（固定图库联邦核心包，预裁 16:9）。Dclemens1971 摄，CC BY 4.0，经 Wikimedia Commons。 / Photo: Entrance of the U.S. Commodity Futures Trading Commission headquarters in Washington, D.C., with the CFTC seal and nameplate (fixed federal-core asset-pack image, pre-cropped to 16:9). Photo by Dclemens1971, CC BY 4.0, via Wikimedia Commons.
