CFTC Sues 3 US States, Claims Sole Authority Over Prediction Markets
The CFTC is suing Illinois, Connecticut, and Arizona, asserting exclusive federal authority over prediction markets and challenging state regulations.Summary
The Commodity Futures Trading Commission (CFTC) and the US Department of Justice have filed lawsuits against Illinois, Connecticut, and Arizona, challenging their attempts to regulate prediction markets. These states previously issued cease and desist letters to platforms like Kalshi and Polymarket, claiming violations of state gambling laws. The CFTC argues it has “exclusive jurisdiction” over these markets under the Commodity Exchange Act (CEA), stating that the states’ actions interfere with a federal scheme designed to oversee national swaps markets. CFTC Chairman Mike Selig criticized the states’ actions as destabilizing and creating market uncertainty. This legal action is part of a broader trend, with 11 states pursuing legal action against prediction market platforms and Congressional lawmakers considering legislative proposals to ban certain event contracts.
(Source：Cointelegraph)