CFTC, DOJ sue Arkansas to stop Kalshi gambling lawsuit

The U.S. Justice Department and Commodity Futures Trading Commission (CFTC) have sued Arkansas to stop its enforcement case against prediction-market operator Kalshi and prevent similar state action against other federally regulated exchanges. The DOJ and CFTC sued Arkansas on November 12, seeking to stop its enforcement case against prediction-market operator Kalshi. Federal regulators argue that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over covered derivatives trading. Arkansas Attorney General Tim Griffin sued Kalshi on November 4, alleging illegal gambling and deceptive business practices. The federal complaint seeks protection for other CFTC-regulated exchanges, including their affiliates and business partners.