CFTC Gives Prediction Markets 30 Days to End State Access Limits

The CFTC's new legal interpretation requires prediction market platforms to stop limiting user access by state, setting up a clash with court rulings and state gambling laws. The interpretation applies to designated contract markets (DCMs), including Kalshi and Polymarket. Kalshi has restricted trading in Nevada, Washington and Michigan. A federal court in California also barred Kalshi from offering sports event contracts on tribal lands involved in litigation. CFTC Chairman Michael Selig said geographic restrictions conflict with fair-access requirements under the Commodity Exchange Act and may weaken liquidity. Several states continue to argue that sports event contracts fall under state gambling laws, leaving federal and state authority in dispute.

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