Federal regulators escalated the legal fight over who should control the rapidly growing prediction market industry by suing states cracking down on the platforms, signaling a new front that could push the dispute toward the Supreme Court or prompt Congress to act.
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The escalation signaled a more aggressive strategy by federal regulators, but practitioners are skeptical they will change the pending legal battle and see them as an effort to elicit more court decisions into the dispute, and that may possibly set up Supreme Court review.
The CFTC’s suits are an opportunity to be more forceful—but it likely won’t alter the path of pending cases, including ones on appellate review, said Blank Rome LLP’s Dennis M.P. Ehling.
It’s a “new front,” Ehling said. “But the position of the CFTC’s leadership, particularly Chair Michael Selig, has been pretty well represented publicly already, including in amici briefs already filed in other cases.”
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"CFTC Accelerates Prediction Market Fight with New State Lawsuits," by Gillian R. Brassil, was published in Bloomberg Law on April 6, 2026.