[Kentucky Becomes the Ninth State in CFTC's Prediction Market Regulatory Dispute] Odaily Planet Daily News – On Tuesday, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against the state of Kentucky, seeking to prevent the state from regulating prediction market platforms as illegal sports betting and gambling platforms, further asserting the federal government's jurisdiction over prediction markets. Previously, Kentucky had filed lawsuits last week against platforms such as Kalshi and Polymarket, accusing them of operating unlicensed illegal sports betting and gambling businesses within the state. In the complaint submitted to the U.S. District Court for the Eastern District of Kentucky, the CFTC stated that Kentucky's attempt to shut down federally regulated designated contract markets interferes with the federal regulatory framework established by Congress for the national swaps market. The agency argued that it holds "exclusive jurisdiction" over related event contracts and prediction market products. Kentucky has now become the ninth state to be sued by the CFTC in disputes over prediction market regulation, highlighting the escalating conflict between federal derivatives regulation and state-level gambling regulation.