U.S. CFTC sues Arizona, Connecticut, and Illinois, claiming exclusive jurisdiction over prediction markets

DeepFlowTech · 2026-04-03T01:31:32+00:00

The US CFTC and Department of Justice have filed lawsuits against Illinois, Connecticut, and Arizona, claiming exclusive jurisdiction over prediction market platforms, stating that state interventions have led to market uncertainty. Eleven states have already taken legal action against the relevant platforms, and Congress is also advancing related legislation.

DeepFlowTech

2026-04-03 01:31:32

Abstract generation in progress

Deep Tide TechFlow message, April 03, according to Cointelegraph, the U.S. Commodity Futures Trading Commission (CFTC), together with the Department of Justice, filed lawsuits on April 3 against Illinois, Connecticut, and Arizona, respectively. The lawsuits argue that, under the Commodity Exchange Act (CEA), the CFTC has exclusive jurisdiction over prediction market platforms. Previously, those three states had issued cease-and-desist orders to prediction platforms such as Kalshi and Polymarket, alleging that they violated state gambling laws. CFTC Chair Mike Selig said that excessive interference by states creates market uncertainty and could adversely affect market participants. At present, 11 states have taken legal action against prediction market platforms, and Congress is also pushing legislation to ban sports-related event contracts and participation in prediction markets involving political insider information.

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