CFTC sues Rhode Island over actions against prediction markets The Commodity Futures Trading Commission (CFTC) is suing Rhode Island, asserting its sole jurisdiction over prediction markets. This action follows Rhode Island’s lawsuit against prediction market platforms, which the state claims are violating sports-betting laws. The CFTC argues that event contracts fall under its regulatory authority over swaps and derivatives, challenging what it calls a “power grab” by states.

• The CFTC has sued Rhode Island over the state’s actions against prediction market platforms Kalshi and Polymarket.
• This is the seventh state the CFTC has sued in a dispute regarding the regulation of prediction markets.
• Rhode Island alleges the platforms violate state sports-betting laws, while the CFTC claims exclusive federal jurisdiction over event contracts.
• The CFTC is seeking to intervene in Rhode Island’s existing lawsuit and has filed its own complaint against the state.
• 18 states are involved in litigation over prediction markets, with Minnesota seeking an outright ban.
• President Donald Trump has stated the commission’s exclusive jurisdiction must be maintained.
• The CFTC has only sued states with Democratic attorneys general, including Rhode Island’s Peter Neronha.