[U.S. Federal Court Rejects CFTC Injunction Request, Wisconsin's Authority Over Prediction Markets Upheld]
On July 28, the U.S. District Court for the Eastern District of Wisconsin ruled to reject the CFTC's preliminary injunction request to prohibit Wisconsin from enforcing regulations on sports-related event contracts offered by platforms such as Kalshi, Coinbase, Robinhood, Polymarket, and ((Crypto.com)). The court found that the CFTC failed to demonstrate a likelihood of success on the merits of its claims and noted that gambling regulation falls under the traditional police powers of the states, with no clear federal law indicating an intent to preempt state law. The court also denied intervention requests from Kalshi and ((Crypto.com)) Derivatives North America (CDNA), as well as the American Gaming Association (AGA)'s motion to intervene as a defendant. The substantive litigation between the CFTC and Wisconsin will continue to proceed.
