The CFTC has filed a lawsuit against New Mexico in an attempt to assert exclusive rights to regulate prediction markets.

This action came after the state filed a lawsuit against Kalshi, accusing the company of operating without a license and providing platform access to individuals under 21. In response, the CFTC filed a lawsuit in U.S. District Court against Governor Michelle Lujan Grisham, Attorney General Raúl Torres, and other state officials. Previously, the CFTC had similar legal proceedings with Wisconsin, Illinois, Arizona, Connecticut, and New York. Meanwhile, cryptocurrency opponent and former SEC head Gary Gensler argues that the law cited by the CFTC does not grant them authority for federal regulation of prediction markets. From 2009 to 2014, he also led the CFTC under Obama when this law came into effect after the 2008 crisis.