The Commodity Futures Trading Commission filed a lawsuit against Utah to block the state's efforts to shut down CFTC-registered contract markets under state law, the agency announced today. The action follows Utah's decision to pursue civil enforcement actions in state court against CFTC-regulated markets and businesses.
The CFTC argues that Utah's enforcement efforts obstruct Congress's decision to place federal authority over commodities and futures market regulation. According to the agency, Utah's restrictions on CFTC-registered exchanges conflict with federal preemption of state law in this area.