CFTC Sues Arkansas to Defend Kalshi’s Federal Jurisdiction, Its Eleventh State Lawsuit

The Commodity Futures Trading Commission sued the State of Arkansas and its attorney general, Tim Griffin, in federal court to stop a state enforcement case against Kalshi, the prediction-market exchange the agency regulates as a designated contract market. The commission announced the lawsuit on Nov. 13 , a day after the complaint was docketed in the Eastern District of Arkansas as Case 4:26-cv-01255-BSM. Arkansas is the eleventh state the CFTC has sued over event contracts, and the filing is the agency’s clearest test yet of a single proposition: that a state court cannot impose penalties on a federally registered exchange…