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CFTC sues three states for trying to regulate prediction markets

The Commodity Futures Trading Commission (CFTC) is suing Illinois, Arizona, and Connecticut for attempting to regulate prediction markets, asserting its exclusive jurisdiction. The CFTC views these markets as trading in futures contracts, distinct from illegal gambling, while the states argue they are overstepping their authority. The lawsuit highlights ongoing disputes over the classification and oversight of prediction markets, with potential implications for market participants and regulatory frameworks.

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