The U.S. Commodity Futures Trading Commission (CFTC) sues Kentucky in federal court, accusing the state of exceeding its authority in actions related to prediction markets. The lawsuit comes as part of an ongoing regulatory dispute over which agency has the right to oversee so-called event contracts. According to reporting across outlets, the CFTC is challenging Kentucky’s approach to regulation through the courts. CNBC reports that this is the first “red state” in the CFTC’s dispute with states, and that the CFTC has now sued nine states in total as it seeks to establish what it considers exclusive federal oversight for these contracts. Cointelegraph similarly describes the filing as the latest in the CFTC’s expanding legal campaign against state-level efforts targeting prediction markets. ReadWrite frames the move as the CFTC asserting its position against Kentucky’s conduct in the midst of a broader regulatory battle. Across sources, the central points are that the CFTC files against Kentucky, the dispute centers on regulatory jurisdiction for prediction markets, and the lawsuit adds to a growing list of states facing federal scrutiny.