CFTC sues Kentucky over prediction markets amid regulatory battle

The Commodity Futures Trading Commission (CFTC) has taken Kentucky to federal court, accusing the state of overstepping its authority in a growing dispute over prediction markets and event-based contracts. A lawsuit filed June 23 in the U.S. District Court for the Eastern District of Kentucky asks a judge to declare that state gambling laws cannot be applied to event contracts traded on exchanges regulated by the CFTC.