CFTC Sues Utah, Warns Kalshi Crackdown Threatens Federal Oversight

The federal government has hauled Utah into court over prediction markets, challenging a state gambling crackdown that targets Kalshi and potentially $61.2 million in trading fees. The showdown pits Washington’s derivatives regulator against one of America’s strictest gambling prohibitions. On Tuesday, the Commodity Futures Trading Commission (CFTC) and the United States filed suit against Utah and Attorney General Derek Brown in federal district court, seeking to prevent state authorities from enforcing gambling restrictions against federally regulated prediction markets.