CFTC sues Illinois, Gov. Pritzker in escalating fight for jurisdiction over prediction markets
The CFTC is suing Illinois and Governor Pritzker to assert its exclusive jurisdiction over prediction markets, escalating a dispute with the state.Summary
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Illinois Governor JB Pritzker and the state, seeking to affirm its exclusive authority over prediction markets. This action follows Illinois’ attempts to shut down platforms like Kalshi, Crypto.com, and Polymarket, which the CFTC argues fall under federal oversight. The CFTC contends that Illinois’ actions violate the Supremacy Clause of the U.S. Constitution, as federal law should take precedence over state law in this area. CFTC Chair Michael Selig has been increasingly assertive about the agency’s jurisdiction, viewing state interventions as a “power grab.” This lawsuit marks the first time the CFTC has directly sued a state over prediction market jurisdiction, building on a previous court brief supporting Crypto.com against Nevada. The agency is requesting a permanent injunction to prevent Illinois from enforcing measures against CFTC-regulated designated contract markets (DCMs).
(Source：The Block)