Federal Agencies Sue Illinois Over Prediction Market Regulation

A federal lawsuit has been filed by the US Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) against the state of Illinois.

The complaint alleges that the CFTC has exclusive jurisdiction over prediction markets, which are operated by decentralized cryptocurrency exchanges (DCMs).

The agency claims that Illinois's attempts to enforce state gambling laws on these exchanges are unlawful, as they do not apply to federally regulated DCMs.