U.S. Regulator CFTC Challenges New York Over Prediction Markets Control

The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against the state of New York over its actions targeting prediction markets. The case, submitted in a federal court in New York, seeks a ruling that the federal agency holds sole authority to regulate these markets.

The dispute follows action by the office of Letitia James, which recently sued cryptocurrency firms, including Coinbase and Gemini. The state alleges that its prediction market platforms breach gambling laws. The federal regulator stated that registered exchanges fall under its jurisdiction and said state-level enforcement conflicts with existing law and past rulings. Coinbase has indicated it will contest the claims and maintain federal oversight.

The move is part of a series of actions by the regulator, which has also filed similar cases against state authorities in Arizona, Illinois, and Connecticut.