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CFTC challenges New Mexico’s authority over Kalshi prediction markets

Regulation

The CFTC sued New Mexico officials in federal court after the state filed a case against Kalshi on 4 June, alleging unlicensed sports betting. The federal regulator argues that event contracts on CFTC-regulated exchanges fall under federal commodities law and seeks to prevent New Mexico from applying its gaming laws to them.

The case could determine whether state gaming laws can be applied to prediction markets overseen by the CFTC.

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