Seventeen Democratic senators move to block CFTC funding for state prediction-market lawsuits
Seventeen Democratic senators sent a letter pressing a Senate committee to block the Commodity Futures Trading Commission from using federal funds to sue states over prediction-market regulation. The move followed CFTC lawsuits against Kentucky and other states seeking to assert exclusive federal oversight of event contracts. Senators Schiff, Padilla, Blumenthal, and Merkley characterized the litigation as undermining state-level regulatory efforts and fueling gambling public health concerns. Gaming organizations also petitioned the Senate to add language to appropriations legislation restricting the agency's enforcement spending on prediction markets.
The funding block would freeze the CFTC's nine-state preemption litigation campaign, leaving Kalshi and Polymarket to defend against state gambling suits without federal cover. Polymarket separately faces a fresh bipartisan Senate demand for a CFTC investigation over market integrity, exposing it to dual congressional pressure.