Louisiana Attorney General Liz Murrill on November 14, 2026 disputed statements by CFTC Chairman Michael Selig about a federal lawsuit against her state, describing them as "flatly false" as a fight over who polices prediction markets intensifies.
Murrill's argument rests on history: she says states have regulated gambling for 250 years and sees no reason a federal agency should change that now.
How a state court order became a federal lawsuit
On November 12, Murrill obtained a temporary restraining order from a Louisiana court. The order targeted approximately 30 to 32 entities offering event contracts in Louisiana without state licenses. Event contracts are bets on whether something will happen, such as an election outcome or a cultural moment, structured as tradable financial products.
The order was issued ex parte, meaning the platforms were not present to argue their side before it was granted. It required the companies to geofence Louisiana, effectively blocking users in the state, and to obtain state licenses before offering the contracts.
Days later, the CFTC and the US Department of Justice responded with a federal lawsuit naming Murrill and Louisiana's state gaming regulators as defendants. According to the federal complaint, the state's action is an attempt to impose rules on markets that Congress placed under federal oversight. The agencies argue that the Commodity Exchange Act, which governs derivatives trading in the US, preempts state regulation of markets the CFTC oversees.
Selig labeled Murrill's lawsuit "naked lawfare and a cynical political stunt." Murrill, beyond disputing his claims, cast the CFTC chair as an "obsequious standard bearer" for the prediction market industry.
Platforms caught in the middle
The affected platforms include Kalshi, Polymarket US, Robinhood, Coinbase, Gemini, and firms affiliated with Crypto.com.
The contracts in question often tie to popular cultural moments and public events. State regulators view them as gambling in a financial costume, while the platforms insist they are regulated derivatives.
A pattern, not a one-off
Louisiana is the 12th state to face this kind of action from the CFTC, a number that suggests a coordinated federal strategy rather than a reaction to a single attorney general.
The pattern is consistent: a state moves to regulate or block prediction markets under its gambling laws, and the federal government steps in arguing that federal derivatives law takes priority.
Murrill's 250-year framing seeks to anchor the debate in that tradition, with gambling regulation historically a state responsibility. The CFTC's counterargument rests on the Commodity Exchange Act: if event contracts are derivatives listed on federally regulated markets, the agency argues, the federal framework controls.
What to watch next
- A federal temporary restraining order motion is set for November 17, which could determine whether the state's order stays in effect while the larger case proceeds.
- A hearing on extending the state injunction is scheduled for November 30, putting a state court and a federal court on overlapping tracks over the same set of platforms.
For the companies involved, the near-term issue is operational. The state order demands geofencing and licensing, meaning either building new compliance systems for Louisiana or pulling products from the state while the litigation plays out.
