The Commodity Futures Trading Commission filed lawsuits challenging actions by Arizona, Connecticut and Illinois directed at CFTC-registered designated contract markets that facilitate trading in lawful event contracts, asserting that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over these markets. The agency argued that state efforts to outlaw, regulate or otherwise restrain event contract trading would create inconsistent requirements and undermine the national framework Congress chose for commodity derivatives markets. It linked its position to its historical recognition of event contracts, including its 1992 approval of the Iowa Electronic Markets, and to Congress’s post-2008 grant of comprehensive authority over contracts based on commodities, which are broadly defined in the statute. Alongside the litigation, the CFTC pointed to its recent Advanced Notice of Proposed Rulemaking on prediction markets and indicated it expects to proceed with regulation intended to reinforce applicable obligations under the Commodity Exchange Act and CFTC rules.
Commodity Futures Trading Commission 2026-04-02
Commodity Futures Trading Commission files lawsuits challenging Arizona, Connecticut and Illinois actions restricting designated contract markets offering event contracts
The Commodity Futures Trading Commission has sued Arizona, Connecticut and Illinois, arguing that the Commodity Exchange Act grants it exclusive jurisdiction over CFTC-registered designated contract markets offering lawful event contracts. The agency warned that state attempts to outlaw or regulate such trading risk creating inconsistent requirements and undermining the national derivatives framework, and highlighted its Advanced Notice of Proposed Rulemaking on prediction markets as a step toward reinforcing obligations under the Commodity Exchange Act and CFTC rules.