CFTC filed a lawsuit against three states in the U.S., reaffirming its exclusive jurisdiction over prediction markets

The Commodity Futures Trading Commission (CFTC) has filed lawsuits against Arizona, Connecticut, and Illinois, reiterating its exclusive jurisdiction over event contracts and prediction markets under the Commodity Exchange Act. It accuses the three states of attempting to prohibit, restrict, or regulate registered designated contract markets through other state-level regulatory measures, including platforms such as Kalshi and Polymarket.

The CFTC seeks a federal court declaration that state actions are invalid and prohibits the states from intervening in prediction market activities that comply with federal regulations.