CoinDesk reported that the U.S. state of Wisconsin has filed a lawsuit against prediction market service operators including Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com. Authorities claim that 'event contracts' are gambling, not investment products. Regarding this, the media diagnosed, "The U.S. Commodity Futures Trading Commission (CFTC) recently filed lawsuits against three states, including Arizona, that regulate prediction markets, arguing that prediction markets fall under swap transactions within CFTC's jurisdiction. Therefore, Wisconsin's current action could potentially lead to the Supreme Court."
