CFTC Sues New York Over Prediction Markets

The Commodity Futures Trading Commission (CFTC) has initiated legal action against New York State, challenging the state's attempt to regulate prediction markets under its gambling laws. The federal regulator asserts that these markets fall under its own jurisdiction as contract markets. This lawsuit highlights a significant jurisdictional dispute between federal and state authorities concerning the oversight of innovative financial instruments. The outcome could set a precedent for how prediction markets are regulated across the United States, impacting their accessibility and operation.