CFTC sues New York over prediction market jurisdiction

The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against New York, asserting federal authority over prediction markets. This action follows New York's recent legal challenges against platforms like Coinbase and Gemini, which the state deemed illegal gambling operations. The CFTC argues that federal law grants it exclusive jurisdiction over these derivatives, preempting state-level regulation. This marks the latest in a series of similar suits filed by the CFTC against states like Arizona, Connecticut, and Illinois, as the agency defends its regulatory purview and the industry it oversees.