CFTC Sues New York Over Prediction Markets Authority

The U.S. Commodity Futures Trading Commission filed a lawsuit against New York state on April 24, 2026, in federal court in Manhattan, escalating a dispute over regulatory authority for prediction markets. The agency accused New York of overstepping by applying state gambling laws to platforms offering event contracts, which the CFTC classifies as federally regulated derivatives.

The federal action follows lawsuits filed by New York Attorney General Letitia James on April 21 against Coinbase Financial Markets and Gemini Titan, two major cryptocurrency exchanges. James alleged that the companies operated unlicensed prediction market products in the state, violating gambling regulations enforced by the New York State Gaming Commission. She described the event contracts, which allow users to wager on outcomes of events such as elections or sports, as forms of gambling where bettors have no control over results and where chance plays a role. Additionally, James highlighted that the platforms permitted access for individuals aged 18 to 20, despite state rules requiring participants in mobile sports betting to be at least 21.

The CFTC's complaint seeks a declaratory judgment affirming...