[CFTC Sues New Mexico, Continues Battle Over Regulation of Sports Prediction Markets] Odaily Planet Daily News – The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit in the federal district court of New Mexico against Governor Michelle Lujan Grisham, Attorney General Raúl Torrez, and other officials, seeking to prevent the state from applying gambling regulations to prediction market platforms. Previously, New Mexico had sued Kalshi, accusing it of offering sports betting to state residents without authorization and allowing users under the state’s legal gambling age of 21 to participate. The New Mexico Attorney General stated that legal gambling in the state can only operate under tribal-state gaming compacts or within a strictly regulated state framework. The CFTC, however, argues that platforms like Kalshi provide federally regulated derivatives contracts, not gambling products under state law. CFTC Chairman Michael Selig stated that New Mexico is attempting to impose state gambling laws on federally regulated derivatives exchanges under the CFTC's exclusive jurisdiction. In recent months, the CFTC has filed lawsuits against several states, including Wisconsin, Illinois, Arizona, Connecticut, and New York, to assert its regulatory authority over sports prediction markets. This week, the agency also proposed broader rules for prediction markets, which still generally allow sports-related contracts, highlighting the escalating conflict between federal and state governments over the boundaries of prediction markets and sports betting.