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Robinhood challenges Washington officials over prediction-market oversight

Regulation

Robinhood filed a lawsuit in the US District Court for the Western District seeking relief against Washington officials, including the state gambling commission and attorney general. The company argues that federal derivatives law governs its event-contract trading and pre-empts state gambling restrictions; Washington officials maintain that state gambling laws can still apply.

The case could affect whether Washington can apply state gambling laws to event-contract trading routed through exchanges.

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Regulation

CFTC sues New York officials over prediction markets

The Commodity Futures Trading Commission and the federal government filed a lawsuit against New York officials on 24 April, seeking a permanent injunction, according to the report. The CFTC argues that federal authority over event contracts takes precedence over state gambling laws; New York Governor Kathy Hochul and Attorney General Letitia James said the state would defend its laws in court. The CFTC also intervened in a Massachusetts court case, but the report gives no further detail on that action.

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