The Commodity Futures Trading Commission is suing Arizona, Connecticut and Illinois over its “ability to exclusively regulate prediction markets.” The lawsuits come over what the CFTC described as the states’ “actions ‘against’ contract markets that were registered with the organization.” The CFTC said that it has the “‘exclusive’ authority to oversee event contracts through the Commodity Exchange Act,” but it “found various states trying to outlaw or hamper activities of designated contract markets that are operating in accordance with the law.” The CFTC’s lawsuits come amid “mounting scrutiny of prediction markets on Capitol Hill and elsewhere” as platforms like Kalshi and Polymarket “skyrocket in popularity.” A group of Congressional Democrats last week introduced legislation “banning prediction market bets on topics including elections, war and sports” (CNBC.com, 4/2).
CFTC suing three states over attempts to regulate prediction markets
