Louisiana AG slams CFTC chair in legal fight over prediction markets

The Attorney General of Louisiana has launched a scathing personal attack on the head of the Commodity Futures Trading Commission (CFTC) as the federal agency sues the state to overturn a ban on prediction markets.

The CFTC filed a lawsuit against Louisiana on Friday, seeking to block a state judge’s order that prohibits 31 prediction market platforms, including Kalshi and Polymarket, from operating within the state. The agency argues that the state’s action unlawfully interferes with its exclusive authority to regulate commodity futures and derivatives markets.

In response, Louisiana Attorney General Liz Murrill issued a statement calling CFTC Chairman Rostin Behnam an “obsequious standard bearer” for the prediction market industry. The statement accused the federal regulator of overstepping its bounds and undermining state-level consumer protection efforts.

The legal battle highlights the growing tension between federal and state regulators over novel financial products that blur traditional jurisdictional lines. The outcome could set a significant precedent for the regulatory treatment of prediction markets and similar crypto-adjacent platforms across the United States.