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

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