The Commodity Futures Trading Commission filed lawsuits challenging actions by Arizona, Connecticut, and Illinois that it says were taken against CFTC-registered designated contract markets facilitating trading in lawful event contracts. The agency is seeking to reaffirm that, under the Commodity Exchange Act, it has exclusive jurisdiction to regulate event contracts, including prediction markets. The CFTC argued that state efforts to outlaw, regulate, or otherwise restrain designated contract markets would impose inconsistent obligations and undermine the national framework Congress adopted for commodity derivatives markets. Chairman Michael S. Selig said the lawsuits are intended to defend market participants from state actions the CFTC views as contrary to the federal regime. The release also pointed to the agency’s history of overseeing event contracts and noted that the CFTC recently issued an Advanced Notice of Proposed Rulemaking on the application of the Commodity Exchange Act and CFTC regulations to prediction markets and expects to move forward with regulation reinforcing those obligations.
Commodity Futures Trading Commission 2026-04-02
Commodity Futures Trading Commission sues Arizona, Connecticut and Illinois to reaffirm its exclusive jurisdiction over prediction markets
The Commodity Futures Trading Commission has sued Arizona, Connecticut, and Illinois over state actions targeting CFTC-registered designated contract markets that facilitate trading in lawful event contracts. The CFTC seeks to reaffirm its exclusive jurisdiction under the Commodity Exchange Act over event contracts, including prediction markets, arguing that state measures would create inconsistent obligations and undermine the federal derivatives framework, and noted it is advancing rulemaking on prediction market regulation.