CFTC Sues Utah to Block State Enforcement Against Prediction Markets

Shenchao TechFlow reported on October 28 that, according to a CFTC announcement on its official website, the U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against Utah to prevent the state from invoking state law to shut down contract markets registered with the CFTC. Previously, Utah had brought civil enforcement actions in state court against Kalshi, Susquehanna, and other CFTC-regulated markets and related entities. CFTC Chairman Michael S. Selig said Congress has authorized the CFTC to exclusively regulate such markets, and that event contracts provide hedging, investment, and information-discovery functions; the CFTC will defend its exclusive jurisdiction over commodity derivatives. The CFTC said it has initiated legal proceedings against an additional 9 states and submitted legal opinions to 4 federal appellate courts and 1 state supreme court.

Source: Shenchao TechFlow