CFTC Files Suit Against Utah to Halt State Actions Targeting Federally Registered Prediction Markets

The Commodity Futures Trading Commission has filed a lawsuit against Utah to block the state's efforts to shut down CFTC-registered contract markets using state laws. The action follows Utah's civil enforcement filings in state court against CFTC-regulated markets and other businesses. Utah's moves obstruct Congress's decision to federally preempt state law in this area.

“Utah seeks to shut down prediction markets across a wide variety of markets,” said CFTC Chairman Michael S. Selig. “Event contracts do not just serve hedging and investment purposes—they also provide the public with information about the outcome of future events. Congress entrusted the CFTC to be the federal regulator with sole responsibility to oversee these markets. As I’ve said before, the CFTC has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives, and that’s exactly what we’ll do.”

CFTC Commitment to Exclusive Federal Oversight

This lawsuit reflects the CFTC's firm commitment to maintaining its exclusive jurisdiction over CFTC-registered prediction markets. The regulator continues to draw a clear line against state challenges to the lawful operation of derivatives exchanges. It will protect federal sovereign interests in these matters.

Actions Across Multiple Jurisdictions

The CFTC has initiated legal proceedings against nine other states. It has submitted briefs in four federal courts of appeal and one state supreme court. These steps underscore the agency's ongoing defense of its regulatory role over event contracts and related markets.