CFTC Sues Rhode Island Over Prediction Markets Dispute

The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Rhode Island following the state's action against prediction market platforms Kalshi and Polymarket. This lawsuit marks the seventh state the CFTC has targeted regarding the authority over prediction markets. The CFTC argues it has jurisdiction over swaps and derivatives, which includes event contracts. Currently, 18 states are involved in legal disputes regarding prediction markets, with Minnesota moving to ban them. The situation indicates ongoing regulatory challenges for these platforms.