CFTC files lawsuits in three U.S. states, reiterates exclusive jurisdiction over prediction markets

According to ChainCatcher, the U.S. 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. The CFTC accuses the three states of attempting to prohibit, restrict, or regulate properly registered designated contract markets, including platforms such as Kalshi and Polymarket, through other state-level regulatory measures.

The CFTC requests that the federal court declare the state-level actions invalid and prohibit these states from interfering with prediction market activities that comply with federal regulations.