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CFTC sues Arizona, Connecticut and Illinois over prediction markets

Regulation

The CFTC filed federal lawsuits against Arizona, Connecticut and Illinois on Thursday, challenging state efforts to restrict event contracts on federally regulated exchanges. The commission argues that federal commodities law gives it exclusive jurisdiction over those contracts, while Arizona's case against Kalshi is cited in its complaint as an example of state action.

The lawsuits could affect how prediction-market operators face state gambling rules while the federal jurisdiction dispute proceeds.

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Regulation

CFTC secures temporary injunction against Arizona action on prediction markets

A US District Court in Arizona temporarily barred the state from proceeding with legal action against prediction market providers after granting the CFTC’s injunction request, according to a media report. The order remains in effect until 24 April. The CFTC also named five initial members of its Innovation Task Force, which will work on regulatory frameworks including prediction markets and event contracts.

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