CFTC and states clash again over Kalshi's sports markets

* The CFTC has reinforced its authority over prediction platforms. * The CFTC aims to ban bets connected to armed conflict, assassinations, and terrorism. **New Mexico is facing a lawsuit from the Commodity and Futures Trading Commission (CFTC) for attempting to enforce state gaming rules on federally regulated contract markets.** The agency is intensifying a growing legal battle over whether federally regulated prediction markets can offer sports-related event contracts without complying with state gambling laws. The case is the latest flashpoint in a nationwide clash between federal regulators and states seeking to restrict platforms such as [Kalshi](https://www.cryptopolitan.com/kalshi-adds-employer-checks-to-curb-insider-trading/). The state had sued prediction market Kalshi for running an unlicensed sports gambling operation. It wanted injunctive relief to bar Kalshi from operating in the state and from continuing to market contracts tied to sporting events. In a Friday federal filing, the CFTC moved to stop New Mexico authorities, asserting that state gambling laws do not apply to CFTC-regulated platforms. It is requesting a declaratory judgment confirming that it alone has the authority to regulate event contracts under federal law, as well as a permanent order preventing the state from enforcing laws that are preempted against its registrants. According to New Mexico, Kalshi has never secured proper licensing and allowed participation from people below the legal age limit of 21. Last week, the CFTC [proposed](https://www.cftc.gov/PressRoom/PressReleases/9249-26) new rules that would enable it to prohibit wagers deemed susceptible to manipulation or inconsistent with the public good.