Louisiana Attorney General Liz Murrill accused CFTC Chairman Michael Selig of making “flatly false statements” over prediction markets. Her comments followed a federal lawsuit seeking to prevent Louisiana from restricting platforms such as Kalshi.
Murrill argued that states have regulated gambling for 250 years. However, Selig maintains that event contracts fall under federal oversight and have traded in Louisiana under federal rules.
CFTC Challenges Louisiana Restrictions
The CFTC and Justice Department sued Louisiana on Friday, arguing that federal derivatives laws take precedence over state gambling regulations. The complaint names Murrill, the Louisiana Gaming Control Board and state police officials.
Related: Cambodia Plans New Crypto Rules as Scam Networks Expand Beyond Its Borders
Selig said the lawsuit would “maintain the status quo” while courts consider the dispute. Louisiana is the 12th state targeted by the CFTC over its authority to regulate prediction markets. The agencies also filed a similar case against Arkansas over its enforcement action against Kalshi.
Court Order Targets Prediction Platforms
A temporary restraining order signed Thursday covers 31 entities linked to Kalshi, Polymarket, Robinhood and other platforms. It prohibits unlicensed event contracts involving sports, elections and awards, while requiring companies to block Louisiana users.
Kalshi has already restricted access in the state. However, the order expires after 10 days unless extended. A hearing on Louisiana’s request for a preliminary injunction is scheduled for November 30.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
