The U.S. CFTC and the Department of Justice are suing the state of Illinois for preventing it from regulating prediction markets.

CoinFeed reported on April 2nd that, according to Reuters, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice have filed a lawsuit against the state of Illinois, Governor J.B. Pritzker, Attorney General Kwame Raoul, and the state's gaming regulators, claiming that the state has no authority to regulate prediction markets regulated by the CFTC. This lawsuit stems from Illinois' previous demands for Kalshi, Polymarket, and Crypto.com to cease their operations, while the federal government argues that such event trading contracts are governed by federal derivatives laws, and that state-level intervention infringes upon the CFTC's exclusive regulatory authority.