CFTC sues Utah to prevent it from restricting federally registered prediction markets
CFTC Sues to Block State Enforcement in Utah Amid Ongoing Efforts to Preserve Jurisdiction
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CFTC sued Utah on October 27, 2026, seeking to prevent the state from shutting down contract markets registered with CFTC under state law. Utah had previously initiated civil enforcement actions in state court against CFTC-regulated markets and other businesses; CFTC also said it had launched legal proceedings against nine other states and filed complaints with four federal appellate courts and one state supreme court.
The case centers on the conflict between state law and federal regulatory authority, and discloses that CFTC has taken legal action against nine other states, showing the increasingly litigious process of defining the boundaries of prediction market regulation.
Source:CFTC — Press releases · cftc.gov