CFTC sues Illinois over state's cease-and-desist letters against prediction markets
The CFTC is suing Illinois over the state's attempts to regulate prediction markets as sports gambling, asserting federal jurisdiction.Summary
The U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice have filed a lawsuit against Illinois and its officials regarding the state’s efforts to shut down prediction market providers. Illinois issued cease-and-desist letters, claiming these companies offered illegal sports gambling products. The CFTC counters that prediction markets deal in swaps, falling under the exclusive jurisdiction of the federal Commodity Exchange Act. The lawsuit argues that Illinois’s actions infringe upon the CFTC’s authority and are preempted by federal law. The CFTC, under Chairman Mike Selig, maintains that these markets are federally regulated, despite companies expanding into sports betting, facing resistance from states like Nevada, which secured a temporary restraining order against Kalshi. The CFTC is also involved in ongoing appeals court hearings regarding similar cases involving Kalshi and Robinhood.
(Source：CoinDesk)