CFTC Tells Prediction Markets to Drop State Geoblocks Within 30 Days

The CFTC issued guidance stating that federally regulated prediction markets generally cannot geoblock U.S. traders by state and gave exchanges 30 days to lift such restrictions or justify keeping them. The move follows a federal judge's order requiring Kalshi to block sports contracts in certain states, intensifying the conflict between federal derivatives oversight and state gambling rules. The guidance matters because state-by-state geoblocking has fragmented liquidity and limited access for traders on CFTC-regulated venues such as Kalshi. Watch for exchanges to remove or defend their state restrictions within the 30-day window and for further court action on whether sports event contracts fall under federal or state jurisdiction.