PANews reported on April 3rd that, according to Cointelegraph, following yesterday's report of the Commodity Futures Trading Commission (CFTC) and the Department of Justice suing Illinois , the two regulatory agencies have also filed lawsuits against Connecticut and Arizona, arguing that the federal government has exclusive jurisdiction over prediction markets. The CFTC claims it "first formally recognized" event contracts in 1992, and Congress has granted it sole regulatory authority over the market. Previously, betting regulators in these three states issued stop-loss orders to prediction platforms such as Kalshi and Polymarket, arguing that event contracts violated state gambling laws. The CFTC chairman stated that these states' "aggressive and excessive" overreach has led to market uncertainty. Currently, 11 states have taken legal action against prediction markets, and congressional lawmakers are also pushing forward proposals to ban sports-related event contracts.