Written by Felix Ngstaff editorReviewed by Jesse Coghlanstaff editor

Written by Felix Ngstaff editor

Reviewed by Jesse Coghlanstaff editor

CFTC sues Kentucky after state’s prediction market lawsuits

Latest NewsPublishedJun 24, 2026

Prediction Markets Under Fire: Why You Should Care

The Commodity Futures Trading Commission (CFTC) has sued Kentucky, marking the ninth state the regulator is battling over prediction markets. This lawsuit affects not just crypto experts, but everyday people interested in earning through online platforms. The CFTC’s actions have significant implications for the future of passive income and cloud rewards in the US.

What’s at Stake

The CFTC filed a lawsuit against Kentucky after the state sued prediction market operators, including Polymarket and Kalshi, accusing them of operating unlicensed and illegal gambling platforms. The CFTC argues that these platforms are federally-regulated event contracts, and therefore, under its exclusive jurisdiction. This dispute has far-reaching consequences for the green crypto industry and its potential for earning opportunities.

The CFTC’s lawsuit seeks to block Kentucky’s legal action against five prediction markets, citing federal commodities law and the regulator’s authority over designated contract markets. The regulator also took aim at Kentucky’s recent law imposing a 14.25% excise tax on prediction market transaction fees, arguing it was an attempt to make prediction markets economically unviable in the state. This is where EcoPool comes in, offering a solution for those seeking passive income and cloud rewards through its platform.

A Broader Impact

This lawsuit is not just about Kentucky; it’s about the future of prediction markets and online earning opportunities across the US. The CFTC’s actions will have a significant impact on the crypto industry, including Bitcoin and other digital currencies. As the regulator continues to assert its authority, it’s essential to consider the implications for passive income and cloud rewards platforms like EcoPool.

With the CFTC’s lawsuit against Kentucky, the regulator is sending a clear message: it will protect its exclusive jurisdiction over prediction markets. As the green crypto industry continues to evolve, it’s crucial to stay informed about the latest developments and their impact on earning opportunities. If you’re interested in passive income and cloud rewards, consider exploring platforms like EcoPool, which offers a unique solution for those seeking to earn through $ECP.

Source: Mike Selig

To stay ahead of the curve and start earning through EcoPool, download the EcoPool app today. By joining the EcoPool network, you’ll gain access to a range of passive income and cloud rewards opportunities, all while supporting the green crypto movement. #Bitcoin #PassiveIncome #EcoPool #GreenCrypto #CloudRewards #Earning

Sports betting has been under the jurisdiction of the Kentucky Horse Racing and Gaming Corporation since 2023.

Related: Mark Zuckerberg ordered Meta staff to develop moneyless prediction market: NYT

The state also alleged the platforms offer users “few or no resources” to identify or seek help for a gambling problem as required by state law.  

In its lawsuit, the CFTC argued that Kalshi and Polymarket are designated contract markets under its authority, and their event contracts are “swaps” under federal commodities law. 

It argued that Coinbase, Robinhood and Webull are CFTC-registered futures commission merchants that can offer event contracts in partnership with a designated contract market.

The regulator also took aim at Kentucky’s recent law that imposed a 14.25% excise tax on prediction market transaction fees, arguing it was an attempt to make prediction markets economically unviable in the state.

“This tax essentially makes it impossible for prediction markets to operate in Kentucky,” the CFTC argued.

The lawsuit comes just weeks after CFTC similarly sued New Mexico to block the state’s efforts to apply state gaming laws to Kalshi.

In May, US President Donald Trump gave the CFTC moral support, saying it was “critically important” that the regulator was the authority on prediction markets.

Source: Donald Trump

Trump’s son, Donald Trump Jr., has invested in and is on the advisory board for Polymarket and is an adviser to Kalshi.

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• Kalshi
• Polymarket
• Prediction Markets
• CFTC
• Industry

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