"The @CFTC has clear and longstanding exclusive jurisdiction to regulate prediction markets. But recently, state regulators have tried to impose inconsistent and contrary obligations on CFTC-registered prediction markets."
"CFTC Chairman Michael Selig stated that the agency would continue to safeguard its exclusive regulatory authority over these markets and defend market participants against overzealous state regulators."
"Congress specifically rejected such a fragmented patchwork of state regulations because it resulted in poorer consumer protection and increased risk of fraud and manipulation."
Federal regulators, including the Commodity Futures Trading Commission and the United States, have filed lawsuits against Arizona, Illinois, and Connecticut. These lawsuits aim to prevent the states from enforcing laws that block event contracts, which federal officials argue fall under their jurisdiction when traded on registered exchanges. State regulators view these contracts as unlicensed gambling. The CFTC asserts its exclusive authority over prediction markets, emphasizing that inconsistent state regulations could harm consumer protection and increase fraud risks.
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