CFTC Sues States Over Prediction Markets in ‘Unprecedented’ Move

The Commodity Futures Trading Commission is asserting federal authority over fast-growing prediction markets with lawsuits against Illinois, Connecticut and Arizona that challenge state efforts to regulate the multibillion-dollar industry.

The agency is seeking injunctions against officials including Illinois Governor JB Pritzker and Connecticut Governor Ned Lamont, as well as the states’ respective attorneys general and gaming boards. The CFTC said the states have sent cease-and-desist letters to companies including Kalshi and Crypto.com to force them to abide by state gambling laws.

“This unprecedented measure by the CFTC is necessary to protect the exclusive jurisdiction” granted to the regulator ...