CFTC Sues Utah Over Kalshi Prediction Market Restrictions

The Commodity Futures Trading Commission (CFTC) and the U.S. Department of Justice (DOJ) have sued Utah over its efforts to restrict prediction market operator Kalshi, arguing that the state's enforcement actions threaten federal regulatory authority over derivatives exchanges. Filed in federal court on Monday, the 33-page complaint (pdf) seeks to prevent Utah Attorney General Derek Brown from applying state gambling restrictions to exchanges registered with the CFTC. The agencies claim that Utah's actions cause “irreparable injury” to federal interests and require preliminary and permanent injunctive relief. The case follows Utah's lawsuit against Kalshi and two Susquehanna trading firms on Oct.