New York · Cointelegraph
CFTC sues New Mexico over prediction market jurisdiction
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New Mexico is the eighth state sued by the CFTC over prediction markets, as Gary Gensler doubted the regulators' claim of authority over sports event contracts.
Key facts
- The state also claimed Kalshi allowed those aged between 18 and 20 to use the platform, below New Mexico’s minimum gaming age of 21
- In an amicus brief filed to the Sixth Circuit on Thursday in Kalshi’s fight with Ohio’s authorities, Gensler argued that the Dodd-Frank Act, passed in 2010 in response to the 2008 financial crisis
- The CFTC said on Friday that it sued New Mexico Governor Michelle Lujan Grisham, state Attorney General Raúl Torrez, and members of the New Mexico Gaming Control Board in federal court “to block
- In its complaint against New Mexico, the CFTC claimed that event contracts are “swaps” under federal commodities laws, and Kalshi is a Designated Contract Market (DCM) under the “exclusive
Summary
New Mexico is the latest US state to be pulled into the Commodity Futures Trading Commission’s legal fight for its jurisdiction over prediction markets after the state sued Kalshi for allegedly offering illegal sports betting. The CFTC said on Friday that it sued New Mexico Governor Michelle Lujan Grisham, state Attorney General Raúl Torrez, and members of the New Mexico Gaming Control Board in federal court “to block the state’s efforts to apply state gaming laws against CFTC-registered contract markets.” New Mexico sued Kalshi on June 4, arguing the company is offering sports betting to residents without a license and that its sports event contracts function the same as traditional sports bets.