CFTC Sues States Over Prediction Market Regulations

Trump administration backs federal oversight of betting platforms like Kalshi, Polymarket, and Crypto.com's OG

Feb. 24, 2026 at 6:55pm

Got story updates? Submit your updates here. ›

The Commodity Futures Trading Commission (CFTC) has filed an amicus brief opposing state lawsuits against prediction market platforms like Kalshi, Polymarket, and Crypto.com's OG. In a video posted on X, CFTC Chairman Michael Selig asserted the federal government's authority to regulate these markets and threatened to sue any states that try to enforce their own regulations. This has sparked a political clash, with Republican Utah Governor Spencer Cox vowing to continue the state's legal battle against the CFTC's federal overreach.

Why it matters

The conflict over prediction markets highlights the ongoing tension between states' rights and federal authority, as well as the ideological divide within the Republican party over the role of technology and gambling. Utah's opposition is driven in part by the Mormon Church's stance against all forms of government-sanctioned gambling, putting them at odds with the Trump administration's pro-business stance.

The details

The CFTC's move to assert federal control over prediction markets comes after a year of an uneasy alliance between MAGA supporters and the 'broligarch' tech industry. While the two groups were previously united by figures like Elon Musk and Big Tech's payments to settle Trump's lawsuits, the administration has now chosen to side with the money and back the federal regulation of these betting platforms.

  • On February 18, 2026, the CFTC filed an amicus brief to the Ninth Circuit Court of Appeals opposing state lawsuits against prediction market platforms.
  • On February 18, 2026, CFTC Chairman Michael Selig posted a video on X threatening to sue any states that try to regulate prediction markets.

The players

Michael Selig

The sole chairman of the Commodity Futures Trading Commission (CFTC), who asserted the federal government's authority to regulate prediction markets.

Spencer Cox

The Republican Governor of Utah, who vowed to continue the state's legal battle against the CFTC's federal overreach on prediction market regulations.

Kalshi

A prediction market platform that has been targeted by state lawsuits, which the CFTC is now opposing.

Polymarket

A prediction market platform that has been targeted by state lawsuits, which the CFTC is now opposing.

Crypto.com

A cryptocurrency exchange that has partnered with Kalshi and created a standalone prediction market called OG.

Got photos? Submit your photos here. ›

What they’re saying

“To those who seek to challenge our authority in this space, let me be clear: we will see you in court.”

— Michael Selig, Chairman, Commodity Futures Trading Commission

“Mike, I appreciate you attempting this with a straight face, but I don't remember the CFTC having authority over the 'derivative market' of LeBron James rebounds. These prediction markets you are breathlessly defending are gambling—pure and simple. They are destroying the lives of families and countless Americans, especially young men. They have no place in Utah.”

— Spencer Cox, Governor of Utah

What’s next

The judge in the case will decide whether to allow the CFTC to proceed with its lawsuit against states that try to regulate prediction markets.

The takeaway

This clash over prediction markets highlights the ongoing power struggle between federal and state governments, as well as the ideological divisions within the Republican party over the role of technology and gambling. The outcome could have far-reaching implications for the future of the burgeoning prediction market industry.