The post Polymarket sues Massachusetts over state authority to regulate prediction markets appeared on BitcoinEthereumNews.com.

Polymarket has sued the state of Massachusetts in federal court, alleging that the Commodity Futures Trading Commission (CFTC) was the only agency authorized by Congress to regulate event contracts. This argument implied that states lack the authority to independently shut down prediction markets over which the CFTC holds exclusive jurisdiction. To demonstrate the seriousness of the situation, Neal Kumar, the Polymarket Chief Legal Officer, acknowledged the filing of the lawsuit in a statement published on Monday, February 9. He asserted that the matter concerns national markets and presents significant legal questions that necessitate federal adjudication rather than state-level handling. Meanwhile, in reference to Massachusetts and Nevada’s acts towards the prediction markets, Kumar mentioned that, “Trying to close down Polymarket US and other prediction markets in state court does not change federal law — states like Massachusetts and Nevada that pursue this will lose a great chance to develop future markets.” Polymarket initiates a legal battle against Massachusetts Regarding Polymarket’s recent move against Massachusetts, reports highlighted that the prediction market’s lawsuit was intended to prevent potential enforcement actions by Andrea Campbell, the Attorney General of Massachusetts.  The company criticized certain states’ attempts to regulate prediction markets, saying these actions improperly interfere with federally regulated derivatives markets. In the meantime, it is worth noting that this legal battle was initiated just after the Massachusetts state court issued a ruling mandating the temporary halt to Kalshi’s contract provisions for sports events within the state.  As reported earlier by Cryptopolitan, Judge Barry-Smith said he intended to finalize the injunction requiring Kalshi to comply with the state’s sports betting law henceforth, following a hearing on January 16. According to the judge, the licensure and the consequent oversight of sports betting in Massachusetts serve both public safety and health, and the Commonwealth’s financial interests. However, he…

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Filed under: News - @ February 10, 2026 12:28 am