TechFlow News: On May 29, the U.S. Commodity Futures Trading Commission (CFTC) filed a motion to intervene in litigation at the U.S. District Court for the District of Rhode Island to block Rhode Island’s enforcement—under state gambling laws—against CFTC-registered prediction markets. The CFTC stated that it holds clear and longstanding exclusive jurisdiction over event contracts under the Commodity Exchange Act, and that relevant state laws may not override designated contract markets.
Previously, Rhode Island had initiated parallel state-court proceedings seeking substantial civil penalties and demanding that the prediction markets cease operations and return profits. This case marks the latest instance in which a state government has challenged the CFTC’s regulatory authority over prediction markets, following similar challenges by Arizona, Connecticut, Illinois, New York, and Minnesota.
