UPDATE: CFTC bans state-by-state user curbs on prediction markets
CIE News ·
Update to CFTC advances lawsuit against Utah over prediction markets
Based on reporting by CoinDesk; not yet independently confirmed.
The CFTC has directed regulated prediction market exchanges not to restrict users on a state-by-state basis, according to CoinDesk, directly conflicting with standing court orders.
The Commodity Futures Trading Commission issued a directive prohibiting regulated exchanges from restricting customer access on a state-by-state basis, according to CoinDesk. As previously reported, the agency is already in an ongoing legal battle with Utah authorities regarding regulatory jurisdiction over prediction markets.
The regulator's formal stance clashes directly with standing court orders that require platforms like Kalshi to maintain state-level geoblocking restrictions, CoinDesk reported. The directive adds another layer of dispute to the struggle over whether federal law preempts state gambling rules.
The CFTC filed suit in late October 2026 to assert exclusive jurisdiction under the Commodity Exchange Act after Utah brought civil and criminal charges against Kalshi and its executives. Utah state officials have maintained that event contracts constitute illegal gambling under state statutes, while Kalshi has disputed the allegations as regulatory overreach.
Key facts
- CFTC forbids state restrictions
- Conflicts with court orders
- Applies to prediction markets
- CFTC suing Utah authorities