CFTC sues 3 states in bid to redefine crypto prediction markets as federal products

Washington has escalated its fight with states over prediction markets, launching lawsuits that could decide whether these platforms operate as national financial products or state-regulated gambling. The outcome will determine if sports contracts can scale or get forced back into local licensing regimes. On Apr. 2, the Commodity Futures Trading Commission (CFTC) sued Arizona, Connecticut, and Illinois, with the Depa…