CFTC files lawsuit against three U.S. states, reaffirming exclusive jurisdiction over prediction markets

BlockBeats message: On April 3, the U.S. Commodity Futures Trading Commission (CFTC) filed lawsuits against the states of Arizona, Connecticut, and Illinois, respectively, reiterating that under the Commodity Exchange Act it has exclusive jurisdiction over event contracts and prediction markets, and accusing the three states of trying to ban, restrict, or regulate registered designated contract markets through other state-level regulatory measures, including platforms such as Kalshi and Polymarket. The CFTC is asking federal courts to declare the state-level actions invalid and to prohibit the states from interfering with prediction market activities that comply with federal regulations.