The Commodity Futures Trading Commission announced on November 13, 2026, that it has filed a lawsuit against Louisiana to prevent the state from prohibiting the offering of event contracts by CFTC-regulated designated contract markets, futures commission merchants, and derivatives clearing organizations.
The federal action follows a Louisiana state court order issued Thursday that shut down the operations of more than 30 companies connected to CFTC-regulated derivatives products without giving the defendants notice or an opportunity to be heard.
CFTC Chairman Michael S. Selig strongly criticized the state's move, saying: “Event contracts have traded openly in Louisiana for years, in compliance with the Commodity Exchange Act and CFTC regulations. The state’s eleventh-hour ‘emergency’ lawsuit seeking to shut down the entire prediction market industry is naked lawfare and a cynical political stunt. The Commission’s lawsuit seeks to maintain the status quo while the federal courts decide this issue in an orderly manner.”
The CFTC said Louisiana is the 12th state it has sued to defend its exclusive jurisdiction over derivatives markets as granted by Congress under the Commodity Exchange Act. The agency has also submitted amicus briefs in four federal Courts of Appeal and one state Supreme Court.
