The post Federal regulator threatens explosive showdown with states over billion-dollar betting platforms appeared on BitcoinEthereumNews.com.

Siding with a large platform against state gaming regulators attempting to shut it down, the U.S. commodities watchdog has entered a heated court battle about who actually has the authority to control prediction markets. The Commodity Futures Trading Commission supported Crypto.com in its dispute with the Nevada Gaming Control Board by submitting court documents to the Ninth U.S. Circuit Court of Appeals on Tuesday. Lawyers for the federal government contend that only Washington, not states that consider these betting-style platforms like traditional casino gaming, may regulate them under commodity trading regulations. Agency chairman vows to defend federal authority The move marks a clear shift under Chairman Michael Selig, who assumed leadership and promptly signaled he intends to block state overreach. In a recent Wall Street Journal piece, Selig wrote that these markets let people hedge against real financial risks and should be viewed as regulated contracts rather than gambling. He cited about 50 ongoing court cases nationwide targeting firms such as Kalshi, Polymarket, Coinbase, and Crypto.com. When states step in independently, he contended, it breeds inconsistency and undermines the national framework. Selig reinforced his stance in an online video, noting the commission has regulated these kinds of markets for over two decades. He described how everyday individuals rely on them to offset losses tied to weather shifts or energy price swings. “We will see you in court,” he declared, underscoring the agency’s commitment to defending what it sees as fair, orderly markets. The Trump administration appears to favor this federal-preemption stance, resisting state-level efforts to restrict or outlaw the platforms. Operators insist their systems function differently from conventional sportsbooks, which they say removes them from certain state gambling laws and specific federal tax obligations. State officials take the opposite view. They classify these platforms as unlicensed wagering operations. Nevada blocked…

---

Filed under: News - @ February 17, 2026 8:29 pm