CFTC sues New York to defend federal authority over prediction markets as 37 AGs push back!

The CFTC filed suit against New York on Friday, escalating its campaign to assert exclusive federal jurisdiction over prediction markets after New York this week sued Coinbase and Gemini for allegedly violating state gambling laws. The agency argues federal law grants it unassailable authority over CFTC-registered designated contract markets, preempting any state-level enforcement action.

New York had previously targeted Kalshi over its sports wagering platform, and the CFTC has now sued Arizona, Connecticut, and Illinois in addition to New York. Chairman Mike Selig, four months into his tenure, called state actions an 'onslaught' threatening Americans' access to event contracts.

The counterweight is significant: 37 state attorneys general — including New York's Letitia James — signed a legal brief in the Kalshi Massachusetts case Friday, warning that the CFTC's preemption theory…