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CFTC Sues Utah, Cautions Kalshi Crackdown Threatens Federal Oversight
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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.
Key facts
- The complaint, filed in the District of Utah under case number 2:26-cv-01055, argues that the Commodity Exchange Act (CEA) gives the CFTC exclusive authority over event contracts traded on designated
- Utah estimates Kalshi collected between $30.6 million and $61.2 million in fees from state accounts through mid-October
- More than 32,000 Utah residents had verified Kalshi accounts earlier in 2026
- Crypto casino Gamdom faces a $15 million bitcoin ransom demand after cyber-extortion group Whitearmor claimed to have stolen records belonging…
Summary
The CFTC filed its 10th state lawsuit, challenging Utah’s enforcement against regulated prediction markets. Utah alleges Kalshi collected up to $61.2 million in fees and caused $5.5 million in resident losses. Kalshi’s earlier federal court defeat complicates the CFTC’s effort to establish exclusive jurisdiction. 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.