CFTC Backs Kalshi in Sixth Circuit Fight Over Ohio's Claim to Regulate Prediction Markets

Odaily Planet Daily reports that the U.S. Commodity Futures Trading Commission (CFTC) has submitted an amicus brief to the U.S. Court of Appeals for the Sixth Circuit in support of prediction market operator Kalshi, pushing back against a case brought by Ohio. Ohio regulators argue Kalshi's contracts amount to unlicensed sports betting. The CFTC maintains the products are federally regulated derivatives under its jurisdiction, leaving states without authority to intervene. CFTC Chair Michael Selig said the Ohio district court adopted an overly narrow view of the agency's powers and urged the appellate court to correct the interpretation. In recent months, the CFTC has also sued Wisconsin, Illinois, Arizona, Connecticut, and New York as it seeks to reinforce its regulatory control over prediction markets. As platforms such as Kalshi and Polymarket grow in popularity, the line between federal oversight and state enforcement is becoming an increasingly contested battleground.