According to a recent LinkedIn post from The Block, New York Attorney General Letitia James has joined 37 other attorneys general in an amicus brief supporting Massachusetts’ lawsuit against prediction market operator Kalshi at the state’s highest court. The post also notes that, within hours, the Commodity Futures Trading Commission, or CFTC, filed suit against New York in Manhattan federal court, asserting that state enforcement actions against prediction market operators are preempted by federal law.
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The post suggests an escalating jurisdictional conflict between state attorneys general and the CFTC over regulation of prediction markets, with the CFTC reportedly suing four states in a three week span. It further highlights that these developments follow closely after James initiated separate legal actions against crypto platforms Coinbase and Gemini, pointing to a broader pattern of regulatory scrutiny that could influence legal risk assessments and compliance costs across digital asset and derivatives markets.