On April 2, 2026, the Commodity Futures Trading Commission (CFTC) sued the state of Connecticut for trying to regulate prediction markets. The CFTC argued that it has “exclusive jurisdiction” to regulate “Designated Contract Markets (DCMs)”, which include prediction platforms under the Commodity Exchange Act (CEA). In 2025, gaming regulators in the state of Connecticut sent cease and desist letters to prediction platforms claiming that the event contracts offered by the platforms violated state gambling laws and licensing requirements. State regulators expressed concern about these contracts which they viewed as unlicensed gambling. The CFTC argued that the CEA “provides a comprehensive regulatory framework for the regulation of derivatives transactions in the United States” and gives the CFTC “exclusive jurisdiction” over products like futures, options, and swaps listed on regulated exchanges. However, Connecticut regulators asserted that these sports wagers violate state law, stating that “[n]one of these entities possess a license to offer wagering in our state, and even if they did, their contracts violate numerous other state laws and policies, including offering wagers to individuals under the age of 21.”