CFTC sues Kentucky over state regulation of prediction markets

The CFTC sued Kentucky over the state's efforts to regulate prediction markets, according to the regulator, which filed the case on 23 June. The commission objects to a 14.25% tax on platform transaction fees and says state rules seek to stop federally registered contract markets. The tax is due to take effect in January 2027, while Kalshi and Crypto.com are challenging it in court.