North Carolina Bill Recognizes CFTC's 'Federal Regulatory Authority' Over Prediction Markets
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North Carolina has passed a law recognizing the CFTC's authority over prediction markets such as Kalshi and Polymarket, breaking with states trying to police them as gambling. The provision, signed by Governor Josh Stein on July 7, taxes the platforms at 6% of their North Carolina-attributable net trading fees, versus a 23% rate on sports betting operators. It lands days after a New York judge dealt Kalshi a major courtroom setback, deepening a national split headed for the higher courts. North Carolina has become one of the few states to formally side with federal regulators in the escalating fight over prediction markets , enacting a law that recognizes the CFTC's authority over platforms like Kalshi and Polymarket. Governor Josh Stein signed the measure on July 7 as part of the state's 2026 budget, Senate Bill 257 . A prediction market registered and licensed by the Commodity Futures Trading Commission may operate lawfully in the state, the statute says, because the Commodity Exchange Act establishes the agency's "exclusive federal regulatory authority" over such platforms. The law leaves oversight of prediction markets to Washington and simply takes a cut. It imposes a 6% tax on operators' net trading fee revenue attributable to North Carolina residents from January 1, 2027, but the statute is explicit that the levy carries no licensing, registration or other regulatory obligations of any kind.
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