The Commodity Futures Trading Commission has backed Kalshi in its appeal against Ohio regulators, asking the U.S. Court of Appeals for the Sixth Circuit to affirm federal oversight of prediction markets.
Summary
- CFTC says Ohio went too far by treating Kalshi’s federally regulated event contracts as sports gambling.
- The Ohio appeal adds to wider state battles over Kalshi, Polymarket, Crypto.com, Coinbase, and Robinhood.
- Trump-appointed CFTC Chair Michael Selig says the agency will defend its authority over prediction markets.
The agency filed an amicus brief in KalshiEx LLC v. Matthew T. Schuler, et al., on May 12. The case centers on whether Ohio can treat Kalshi’s sports event contracts as unlicensed sports gambling.
State authorities had told the company to stop offering those markets in Ohio. Kalshi sued, but a federal district court denied its request for protection in March. The company then appealed.
Selig says Ohio read CFTC power too narrowly
CFTC Chairman Michael S. Selig said the Ohio court took an “improperly narrow view” of the agency’s authority. He also said the CFTC would not allow “overzealous state governments” to weaken its role over these markets.
Selig was sworn in as the 16th CFTC chairman on Dec. 22, 2025, after President Donald Trump nominated him and the Senate confirmed him. His comments show the agency’s current position: event contracts traded on CFTC-regulated exchanges should sit under federal derivatives law, not separate state gambling rules.
Meanwhile, the Ohio filing is part of a wider legal fight over prediction markets. The CFTC said it has already sued Arizona, Connecticut, Illinois, New York and Wisconsin. It also secured court protection against state regulation of CFTC-regulated prediction markets in Arizona.
Recent market updates show the dispute has moved beyond one company. Earlier reports said state actions have involved Kalshi, Polymarket, Crypto.com, Robinhood and Coinbase. Some states argue these products look like betting, especially when they relate to sports outcomes. Platforms and the CFTC say the contracts are federally regulated derivatives.
Wider market stakes
Related crypto.news coverage said a Consensus Miami debate framed the issue as a clash between regulated financial contracts and state gambling law. Selig said those cases could reach the Supreme Court, while Kalshi’s sports contracts now account for most of its trading volume.
Separate coverage also noted that Kalshi won a key ruling against New Jersey, where a court backed federal oversight of its CFTC-supervised sports contracts. That case gave prediction market operators support, but the Ohio appeal shows the legal fight remains active across several courts.
