"Wisconsin AG Josh Kaul filed three civil lawsuits against Kalshi, Polymarket, and others, claiming their sports contracts are illegal under state law, specifically Wis. Stat. 945.03(1m)."
"CFTC Chairman Michael Selig stated that states cannot override Congress, emphasizing that interference with federal law regulating financial markets will lead to legal action."
"The core issue is whether event contracts qualify as CFTC-regulated derivatives or illegal gambling under state law, with Kalshi treating them as federally authorized swaps."
"The CFTC contends that Wisconsin's lawsuits create a regulatory patchwork that Congress aimed to prevent when establishing the CFTC framework for derivatives."
On April 28, 2026, the CFTC filed a lawsuit against Wisconsin in response to three lawsuits initiated by Attorney General Josh Kaul on April 23. These lawsuits targeted platforms such as Kalshi and Polymarket, claiming their sports contracts violate state gambling laws. The CFTC argues that these contracts are federally regulated derivatives, while Wisconsin views them as illegal sports betting. The conflict highlights the tension between state and federal regulations regarding financial markets and gambling, with implications for the U.S. Supreme Court.
Read at news.bitcoin.com
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