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CFTC Backs Kalshi in Ohio Dispute Over Prediction Markets Jurisdiction

According to the CFTC’s amicus filing, Ohio overstepped by ordering Kalshi to stop sports event contracts on a designated contract market, reinforcing the agency’s claim of federal jurisdiction over prediction markets.

Fact Check
The claim is strongly supported by multiple independent, contemporaneous sources. The Block, crypto.news, and AMBCrypto all report the CFTC filed an amicus brief on May 12, 2026 in KalshiEx LLC v. Schuler at the Sixth Circuit, directly backing Kalshi and arguing Ohio exceeded its authority by treating CFTC-regulated prediction market contracts as unlicensed sports betting. The CFTC's own homepage references a press release titled 'CFTC Reaffirms Exclusive Jurisdiction Over Prediction Markets in Sixth Circuit Am...' which corroborates the filing. The Ohio AG's official press release from April 2026 independently confirms the jurisdictional dispute is real and ongoing. All key elements of the claim — CFTC backing Kalshi, Ohio dispute, prediction markets jurisdiction, federal oversight push — are confirmed across authoritative sources.
Summary

The Commodity Futures Trading Commission filed an amicus brief supporting Kalshi in its appeal against Ohio, arguing that the state exceeded its authority by ordering the company to halt sports event contracts listed on a designated contract market. The agency said prediction markets fall under CFTC jurisdiction and described Ohio’s action as regulatory overreach. The dispute could have broader implications for Kalshi, Polymarket, and the wider event contract market by clarifying whether these products are governed at the federal level or subject to state intervention.

Terms & Concepts
  • Prediction markets: Markets where participants trade contracts tied to the outcomes of future events, often raising questions over whether they are regulated as derivatives or gambling products.
  • CFTC: The Commodity Futures Trading Commission, the U.S. federal regulator that oversees derivatives markets and argues it has authority over these event contracts.
  • Amicus brief: A court filing submitted by a non-party to support a legal argument or provide the court with relevant expertise on the issues in dispute.