Trump CFTC sues three states to block prediction-market shutdowns

The CFTC under the Trump administration sued Arizona, Connecticut, and Illinois on April 2, 2026, seeking injunctions to prevent state enforcement actions against Kalshi and Polymarket prediction markets. The suits argued that the Commodity Exchange Act gives CFTC exclusive jurisdiction over event contracts traded on federally registered designated contract markets, preempting state gambling laws. Wisconsin joined the fight on April 24, when it sued Kalshi, Coinbase, Polymarket, Robinhood, and Crypto.com; the CFTC countersued Wisconsin on April 28 to block enforcement.