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Prediction markets face legislative pressure and federal challenges to state restrictions

Lawmakers have introduced nearly 30 bills since 2025 targeting prediction markets and none have passed, while the CFTC has filed lawsuits against 10 states in 2026 over state restrictions on federally registered platforms.

Lawmakers have introduced nearly 30 bills targeting prediction markets since 2025, but none have passed, according to WSNext. The tally highlights a gap between legislative scrutiny and enacted measures.

The legislative push is unfolding alongside litigation over state restrictions on federally registered platforms. According to WSNext, the CFTC has filed lawsuits against 10 states in 2026 over those restrictions.

Two fronts in the regulatory dispute

The bills and lawsuits represent distinct regulatory developments. Lawmakers are pursuing measures targeting prediction markets, while the CFTC is challenging restrictions imposed at the state level.

For prediction-market readers, the distinction matters: introducing legislation does not establish a new rule, and filing a lawsuit does not establish its outcome. The supplied summary gives no further details about the bills or the status of the litigation.

What it means for prediction markets

  • Legislative activity is not enacted policy: Nearly 30 bills have been introduced since 2025, with none passed.
  • Federal and state positions are in conflict: The CFTC’s lawsuits against 10 states in 2026 concern state restrictions on federally registered platforms; the summary provides no litigation outcomes.
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