New Jersey petitions Supreme Court to decide: states or CFTC regulate prediction markets

New Jersey's Attorney General and gaming authorities filed a petition for a writ of certiorari to the US Supreme Court on September 2, asking the Court to resolve whether states or the federal CFTC have authority to regulate prediction-market sports products. The petition marks the first state-led effort to bring the question before SCOTUS, according to CoinDesk's reporting.

The case centers on Kalshi, which has offered sporting event contracts to New Jersey residents. The petition comes as multiple appeals courts have issued conflicting rulings on whether states can crack down on prediction markets' sports offerings, creating legal uncertainty that the petitioners argue requires the Supreme Court's intervention.

Kalshi has contended that it cannot be regulated by 50 different state regulators, according to Cointelegraph's reporting. The company's position frames the stakes: a state-by-state regulatory regime would splinter the market, while federal CFTC authority would establish a uniform national standard.

Neither CoinDesk nor Cointelegraph reported the CFTC's formal position on the jurisdictional question or named the specific federal agencies participating in the New Jersey filing.