CFTC demands nationwide prediction market access despite state court restrictions

The Commodity Futures Trading Commission says prediction market exchanges cannot exclude customers based on their state, according to CoinDesk. The directive gives firms 30 days to restore access in closed regions or explain why doing so is not feasible.

Federal access requirement meets state restrictions

Under Chairman Mike Selig, the CFTC’s position applies to designated contract markets such as Kalshi and Polymarket, CoinDesk reports. The regulator says those exchanges cannot use state-based geofencing to block customers.

That position creates a conflict with court orders in states including Nevada, Washington and Michigan. Exchanges face a federal demand for nationwide access alongside state court restrictions.

A deadline to reopen or explain

The 30-day window requires affected firms either to reopen regions they have closed or to provide an explanation of why reopening is not feasible, according to CoinDesk. It is therefore a deadline for action or justification, rather than an unconditional requirement that every blocked region reopen within that period.

The supplied report does not specify how the conflict with state court orders will be resolved or how individual exchanges will respond.

What it means for prediction markets

• Access is the immediate issue: The CFTC’s position challenges state-based exclusions by designated contract markets such as Kalshi and Polymarket.
• The deadline has two possible responses: Firms have 30 days to restore access or explain why that is not feasible; the directive alone does not establish that all closed regions will reopen.
• Court conflicts remain unresolved: Orders in Nevada, Washington and Michigan are central to whether the federal access requirement can be implemented.