politics
April 2, 2026
CFTC sues Arizona, Connecticut, Illinois over prediction market regulation
The Commodity Futures Trading Commission said it was suing Arizona, Connecticut and Illinois over its ability to exclusively regulate prediction markets.
TL;DR
- The CFTC is suing Arizona, Connecticut, and Illinois for interfering with prediction markets.
- The commission claims exclusive authority to regulate these markets under the Commodity Exchange Act.
- States are reportedly trying to outlaw or hinder the operations of registered contract markets.
- CFTC Chairman Michael S. Selig stated that state-by-state regulations create a fragmented and risky environment.
- The lawsuits come amid increasing attention on prediction markets like Kalshi and Polymarket.
- Some Congressional Democrats have proposed legislation to ban prediction market bets on elections, war, and sports.
- The NFL's chief compliance officer requested operators block 'objectionable' event contracts.
Continue reading the original article