US CFTC sues Rhode Island to maintain exclusive jurisdiction over prediction markets
ChainCatcher reported that the US Commodity Futures Trading Commission (CFTC) has disclosed that it has filed a lawsuit with the US District Court in Rhode Island to prevent the state from applying state gambling laws to CFTC-registered contract markets. CFTC Chairman Michael S. Selig stated that CFTC-registered exchanges are facing a large number of lawsuits aimed at restricting Americans' participation in event contracts, which undermines the CFTC’s exclusive jurisdiction over prediction markets.
Selig emphasized that event contracts are commodity derivatives and fall entirely under the CFTC’s regulatory scope. The CFTC also faces similar jurisdictional challenges in states such as Arizona, Connecticut, Illinois, New York, and Minnesota. The CFTC stated that the Commodity Exchange Act grants it exclusive jurisdiction over event contracts.
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