Prediction markets are fueling a high-stakes brawl between states and federal regulators

• Sixteen states are involved in legal proceedings with prediction market platforms, while one state has moved to ban them.
• The Commodity Futures Trading Commission has sued six states to defend what it sees as its exclusive jurisdiction to regulate event contracts, which it classifies as swaps.
• While the commission says it will target any state that undermines its authority, it has only sued states that have Democratic attorneys general.

Source: https://www.cnbc.com/2026/05/21/where-the-feds-are-fighting-states-over-prediction-markets.html