CFTC Sues Wisconsin Over Prediction Market Jurisdiction, Testing Federal Preemption

On April 28, 2026, the CFTC filed suit against Wisconsin in response to state-level enforcement actions against Kalshi and other prediction market platforms. The case centers on whether federally registered Designated Contract Markets can be subject to state oversight or whether the Commodity Exchange Act forecloses such interference. The outcome will determine whether prediction markets operate under unified federal rules or a fractured state-by-state regime.