The CFTC sues Wisconsin; files lawsuits against five states in a single month to defend jurisdiction over prediction markets

According to a report by The Block, on April 28 the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit in the U.S. District Court for the Eastern District of Wisconsin, which is the fifth state in the past month that the CFTC has sued over the issue of jurisdiction over prediction markets. In its complaint, the CFTC argues that it has “exclusive jurisdiction” over prediction markets, saying that Wisconsin is trying to label federally regulated markets as criminal and is infringing on the federal regulatory framework designed by Congress.

CFTC’s Lawsuit Content and Claims of Federal Jurisdiction

According to the CFTC complaint cited by The Block, the CFTC states explicitly in the complaint: “Wisconsin is trying to criminalize federally regulated markets and shut down those markets, infringing on the exclusive federal plan Congress designed to regulate national swap markets.” The CFTC asks the court to declare that Wisconsin’s bans or regulations—where they apply to event-contract swaps traded on designated contract markets (DCMs) regulated by the CFTC—have been preempted by federal law and are therefore illegal.

According to The Block, the five states that CFTC has sued in the past month regarding regulatory jurisdiction disputes over prediction markets, in order, are:

· Illinois

· Arizona

· Connecticut

· New York

· Wisconsin (April 28, 2026)

According to The Block, CFTC Chair Michael Selig has begun drafting new rules and has publicly said that the agency has broad regulatory authority under existing regulations.

Wisconsin’s Earlier Litigation Action

According to The Block, in late April 2026 Wisconsin was the first to sue Coinbase, Robinhood, Crypto.com, Polymarket, and Kalshi, accusing the sports-event-related contracts on the aforementioned platforms of constituting “public nuisance.” With Wisconsin’s lawsuit action first, the CFTC subsequently filed this federal lawsuit against Wisconsin on April 28.

Alliance of 37 State Attorneys General: Amicus Brief

According to The Block, including New York and Oklahoma, 37 state attorneys general jointly submitted an amicus brief to a Massachusetts court last week, supporting the states’ ruling on the regulation of prediction markets. The brief urges the court to uphold the January 2026 ruling, which found that Kalshi had not obtained a Massachusetts gaming commission license and therefore may not offer sports-event contracts to residents of the state.

In a joint statement, New York Attorney General Letitia James said: “If Congress intended to overturn the longstanding tradition of state oversight of the gambling industry since the founding, it should say so clearly… The CFTC cannot claim exclusive authority to regulate a gambling industry worth billions of dollars based on a legal provision that fundamentally does not mention gambling.”

Frequently Asked Questions

When did the CFTC sue Wisconsin? Which officials are the defendants?

According to The Block’s report dated April 28, 2026, on the same day the CFTC filed suit in the U.S. District Court for the Eastern District of Wisconsin. The defendants include Governor Tony Evers, Attorney General Joshua Kaul, and John Dillett, director of the state agency’s sports wagering oversight office.

Which states has the CFTC sued in the past month over prediction-market jurisdiction issues?

According to The Block, in one month the CFTC has sued Illinois, Arizona, Connecticut, New York, and Wisconsin in sequence—five states in total.

Which platforms did Wisconsin sue last week? What are the allegations based on?

According to The Block, Wisconsin sued Coinbase, Robinhood, Crypto.com, Polymarket, and Kalshi, accusing the sports-event-related contracts on the aforementioned platforms of constituting “public nuisance.”