Louisiana AG Accuses CFTC Chair of False Statements in Prediction Market Fight

what happened

Louisiana Attorney General Liz Murrill accused CFTC Chairman Michael Selig of "flatly false statements" after he defended prediction markets trading in the state. His post on X said event contracts have traded openly in Louisiana for years, in line with federal law and regulations. The Block reported the exchange.

A day earlier, the CFTC filed suit against the state to block a court order that shuts prediction markets out of Louisiana. The complaint was filed in the U.S. District Court for the Eastern District of Louisiana and asks the court to rule that state gambling laws do not apply to CFTC-regulated markets. It is the agency's 12th lawsuit against a state.

A temporary restraining order issued by a state court covers 31 entities, including Kalshi, Polymarket, Robinhood and Coinbase. It bars them from offering contracts on sports, elections and other events to Louisiana residents without a state license. A hearing on a preliminary injunction is set for November 30. Kalshi has already cut off access for users in the state.

why it matters

For markets, the question is whether federal or state regulators will oversee prediction platforms. The outcome could determine whether companies keep customers in large states. For now it is a niche story, but it sets the tone for the whole sector.

market impact

Prediction markets: jurisdiction fight could limit customer access in individual states

instruments