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Boosted by zkat@toot.cat ("Katerina Marchán"):
molly0xfff@hachyderm.io ("Molly White") wrote:
The CFTC (the US commodities regulator) has just sued (https://www.cftc.gov/PressRoom/PressReleases/9206-26) Arizona, Connecticut, and Illinois for their efforts to "outlaw, regulate, or otherwise restrain" prediction markets like Kalshi.
This is another escalation by newly appointed CFTC chair Mike Selig (and sole Commissioner at the agency), who has taken it upon himself to assert the CFTC's sole regulatory authority over prediction markets. Recently, the CFTC filed a supporting brief in Crypto .com's lawsuit against Nevada.
As I wrote then (https://www.citationneeded.news/issue-101/#cftc), "Since the CFTC has filed no enforcement actions against prediction markets after embracing the sector following Trump’s election, Selig’s jurisdictional claim seems designed to shield the sector rather than regulate it."
Nevertheless, the CFTC's press release accompanying these lawsuits claims that state regulatory intervention could result in "poorer consumer protection and increased risk of fraud and manipulation".