CFTC sues New Mexico over prediction market jurisdiction
The CFTC has escalated its fight over prediction markets by suing New Mexico Governor Michelle Lujan Grisham, Attorney General Raúl Torrez, and state gaming officials after New Mexico sued Kalshi for allegedly offering illegal sports betting without a license. New Mexico says Kalshi’s sports event contracts are effectively bets and that the platform allowed users aged 18–20, below the state’s 21-plus gaming age. The CFTC argues event contracts are “swaps” under federal law and that Kalshi, as a Designated Contract Market, falls under the agency’s exclusive jurisdiction. It wants the court to block New Mexico from enforcing state gaming laws against CFTC-regulated exchanges. New Mexico is the eighth state the CFTC has sued in this broader dispute. Separately, former CFTC and SEC chair Gary Gensler said Dodd-Frank was not meant to cover sports betting contracts and questioned whether Congress intended to bar state regulation.
