CFTC sues Louisiana after state orders Kalshi, Polymarket offline

Louisiana is the 12th state the CFTC has sued, & the second in two days.

The hit

The CFTC sued Louisiana on Friday to block a state court order that bars Kalshi, Polymarket, Coinbase, Robinhood & 27 other entities from offering event contracts there. Louisiana Attorney General Liz Murrill hit back Saturday, calling CFTC Chairman Michael Selig the “obsequious standard bearer” for prediction markets, according to The Block.

Why it matters

The clash decides who actually regulates event contracts in the US: federal derivatives law or state gambling law. Selig called Murrill’s suit “naked lawfare and a cynical political stunt” & said states were trying to “lock up founders and CEOs” of prediction market companies. The state’s order requires the named firms to geofence Louisiana, & Kalshi has complied by cutting off access for Louisiana users.

The record

State order signed	Thursday, by Judge Jeffrey Johnson, Tangipahoa Parish (21st Judicial District Court)
Entities barred from Louisiana	31, including Kalshi, Polymarket, Coinbase, Robinhood, Crypto.com, Gemini
Order duration	expires after 10 days unless extended
States sued by CFTC so far	12, including Arkansas (sued Thursday) & Louisiana
States suing prediction markets	11, with Louisiana the latest, according to The Block

What happens next

A hearing on Louisiana’s motion for a preliminary injunction, filed in state court, is set for 9am local time on 30 November. The CFTC’s pre-emption claim is pursued separately, in its federal complaint in the Eastern District of Louisiana.

Sources: Louisiana AG calls CFTC chair an ‘obsequious standard bearer’ for prediction markets following agency lawsuit

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