The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit against three states - Illinois, Arizona and Connecticut - over jurisdiction for prediction markets.

According to a recent report by The Block, the CFTC said Illinois infringed the federal government’s “exclusive jurisdiction” in connection with the state’s crackdown on platforms, including sending orders to halt operations to Kalshi, Crypto.com and Polymarket.

In its complaint filed in the U.S. District Court for the Northern District of Illinois, the CFTC said the Illinois state government, state Attorney General Kwame Raoul (콰미 라울) and gaming regulators tried to block a “federally regulated designated contract market (DCM)”.

The CFTC said the Illinois actions encroached on the federal oversight framework under the Commodity Exchange Act. It also asked the court to determine whether the actions violated the U.S. Constitution’s Supremacy Clause.

The CFTC also filed suit against Arizona and Connecticut. In a statement, CFTC Commissioner Michael Selig (마이클 셀릭) said the agency would protect market participants from state regulators’ “excessive regulation” and defend the commission’s exclusive regulatory authority over prediction markets.