CFTC sues Wisconsin to block state crackdown on prediction markets
The Commodity Futures Trading Commission filed a federal lawsuit against Wisconsin on Tuesday to block the state's crackdown on prediction markets, seeking a preliminary injunction to stop Wisconsin from enforcing its own laws against CFTC-regulated platforms. The suit came days after Wisconsin Attorney General Josh Kaul and the state Department of Justice sued five prediction market platforms in Dane County state court last Thursday. A federal judge had already granted the CFTC a temporary restraining order the prior week, finding the agency showed substantial likelihood of prevailing on the merits. The CFTC argues the Commodity Exchange Act gives it exclusive jurisdiction and that state interference would fragment regulation and drive activity offshore. Wisconsin is the fifth state the agency has sued in this escalating campaign, with similar recent actions against New York and an amicus brief filed in related litigation.
Freezes Wisconsin Attorney General Josh Kaul's enforcement action against five platforms until the federal court rules on preemption, delaying any state-ordered shutdowns or fines for months while the CFTC pursues nationwide precedent.