According to market sources, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice (DOJ) have filed a lawsuit against the governor and attorney general of Illinois, accusing them of exceeding their legal authority in attempting to regulate prediction markets. The two agencies argue that Illinois' regulatory measures are invalid because the state government has no jurisdiction over federally regulated prediction markets. The lawsuit emphasizes the need to protect innovative financial instruments from unauthorized interference by local governments. (Reuters)