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U.S. agency hits Utah with suit to shield Kalshi's ability to offer betting there
Compiled by KHAO Editorial — aggregated from 3 sources. See llms.txt for citation guidance.
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The U.S. agency that oversees derivatives has filed a federal legal challenge to halt Utah's attempt to stop prediction market betting in its state, where gambling is constitutionally banned.
Key facts
- The CFTC is currently battling 10 states in court and has been filing legal arguments across the full spectrum of the judicial system, all while having been cut in legal staffing
- One of the authors of the Dodd-Frank Act, former Senator Chris Dodd, similarly filed an amicus brief agreeing with the state view
- In Utah, a U.S. district court judge sided with the state in a case that's also under appeal
- The U.S. Commodity Futures Trading Commission is asking the court to put a stop to the Utah attorney general's enforcement effort last week that was meant to restrict Kalshi from offering gambling
Summary
The Commodity Futures Trading Commission has added to its lengthy lists of court actions against states in its ongoing commitment to protect its position as the lone regulatory authority over Kalshi and other prediction market firms, this time, Utah. Gambling is illegal in the state, which has been pursuing a legal effort to halt Kalshi’s offerings there, but the CFTC is arguing its federal authority preempts the state’s. The U.S. Commodity Futures Trading Commission is asking the court to put a stop to the Utah attorney general's enforcement effort last week that was meant to restrict Kalshi from offering gambling to residents in the state, where it's illegal.