[CoinDesk] U.S. prediction markets regulator issues demand that clashes directly with courts

The U.S. Commodity Futures Trading Commission told regulated prediction-market exchanges they cannot cut off customers on a state-by-state basis, setting up a direct conflict with court orders binding firms such as Kalshi. The clash follows a series of state-level actions against Kalshi's event contracts, including cease-and-desist demands and litigation, that have forced the platform to geo-block users in certain jurisdictions. The CFTC's position asserts that federal derivatives regulation preempts states from fencing off access to CFTC-regulated venues, a stance that could reshape how prediction markets operate nationwide. The dispute matters because it tests whether a single federal framework or a patchwork of state rules governs event contracts, with implications for Kalshi, Polymarket's U.S. ambitions and the broader sector's growth. What to watch next is whether courts reconcile the conflicting directives, how quickly states escalate, and whether exchanges must keep blocking users while appeals proceed.