CFTC Asks Federal Judge to Halt Utah’s Kalshi Gambling Case

The Commodity Futures Trading Commission wants a federal judge to bar Utah from treating CFTC-regulated prediction markets as illegal gambling, starting with the state’s week-old case against Kalshi . The agency announced the suit Tuesday, making Utah the tenth state it has taken legal action against. Its complaint, filed Monday in federal court in Utah, lists the United States and the CFTC as plaintiffs and the State of Utah and Attorney General Derek Brown as defendants. Its legal theory is preemption: the plaintiffs argue the Commodity Exchange Act overrides Utah’s gambling, election-betting and public nuisance laws whenever they reach event contracts on CFTC-registered exchanges.

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