The three states have attempted to outlaw, regulate or otherwise restrain the activities of CFTC-registered designated contract markets (DCMs) that facilitate trading in lawful event contracts, the regulator said in a Thursday press release.
Reached by PYMNTS, the Arizona attorney general’s office declined to comment on the litigation. The Illinois attorney general’s office said they are reviewing...
Steelman: The CFTC is asserting its jurisdiction over event contracts traded on DCMs and challenging state laws that interfere with its regulatory authority. The states are accused of attempting to regulate or outlaw activities deemed lawful by the CFTC.
Patterns detected: ARC-0043 Motte-and-Bailey, ARC-0024 Ambiguity
The CFTC's argument presents a clear motte (its exclusive jurisdiction over event contracts) and a bailey (state laws that interfere with its authority). The ambiguity arises from ...