The Commodity Futures Trading Commission filed suit in the U.S. District Court for the Southern District of New York seeking to stop New York from applying state gambling laws to CFTC-registered contract markets that list event contracts. The agency is asking the court for a declaratory judgment that federal law gives the CFTC exclusive authority to regulate event contracts and for a permanent injunction preventing New York from enforcing state laws the CFTC argues are preempted as applied to its registrants. New York’s efforts have included cease-and-desist letters and civil enforcement suits against CFTC-registered entities. The CFTC framed the case as part of its broader pushback against state actions that, in its view, restrict access to event contracts and challenge the CFTC’s jurisdiction over prediction markets. The lawsuit follows similar CFTC actions in Arizona, Connecticut, and Illinois aimed at affirming exclusive federal jurisdiction over CFTC-registered designated contract markets offering event contracts.
Commodity Futures Trading Commission 2026-04-24
Commodity Futures Trading Commission sues New York to block state gambling enforcement against CFTC-registered prediction markets
The Commodity Futures Trading Commission has sued in the U.S. District Court for the Southern District of New York seeking a declaratory judgment that federal law gives it exclusive authority over event contracts listed on CFTC-registered contract markets and a permanent injunction barring New York from applying state gambling laws to such markets. The action responds to New York cease-and-desist letters and civil enforcement suits against CFTC registrants and follows similar CFTC litigation in Arizona, Connecticut, and Illinois.