Polymarket files a lawsuit against the state of Massachusetts in federal court, arguing that only the CFTC has the authority to regulate event contracts, while at least eight U.S. states have enacted measures restricting this activity.

Polymarket has filed a lawsuit against the state of Massachusetts in federal court, with the core argument that the U.S. Commodity Futures Trading Commission (CFTC) is the sole agency authorized by Congress to regulate event contracts, implying that states do not have the independent authority to close prediction markets within the exclusive jurisdiction of this federal agency.

Neal Kumar, the legal director of Polymarket, confirmed the filing of the lawsuit in a public statement on Monday, February 9, asserting that the case involves nationwide markets and raises important legal questions that need to be adjudicated at the federal level rather than the state level.

Kumar warned that attempts to shut down Polymarket US and other prediction markets through state courts do not change federal law, and suggested that states like Massachusetts and Nevada pursuing this path would miss a significant opportunity to develop the futures market.