Michael Selig, chairman of the Commodity Futures Trading Commission, said the agency was prepared to defend its exclusive authority over derivatives markets before the Supreme Court. The CFTC is suing at least 10 states, including Arizona, Connecticut, Illinois and Utah, in a dispute that began in April 2026 over prediction markets and event contracts. It relies on federal preemption to challenge state laws and enforcement efforts that treat these products as gambling. Preliminary injunctions supporting the CFTC have already been issued in Arizona and Illinois, while cases are pending before four federal appellate courts and one state supreme court. A final resolution could take years, with Kalshi, Polymarket and Crypto.com/Nadex facing either a uniform federal framework or divergent state restrictions.
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