The CFTC and the Department of Justice have sued the Governor and Attorney General of Illinois, accusing them of having no authority to regulate prediction markets

According to a report by Reuters, the Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) have filed a lawsuit against the Governor of Illinois and the Attorney General, accusing them of attempting to regulate prediction markets beyond their legal authority.

The two agencies stated that the relevant regulatory measures in Illinois are invalid because the state government does not have the authority to govern federally regulated prediction markets. The lawsuit emphasizes the protection of innovative financial instruments from overreach by local governments.