CFTC sues Utah to shield Kalshi from state gambling crackdown

The federal derivatives regulator says its authority over prediction markets overrides Utah's constitutional ban on gambling The Commodity Futures Trading Commission has taken Utah to federal court. The goal is to stop the state from shutting down Kalshi’s prediction markets within its borders. Utah has banned gambling in its constitution since it became a state in 1896. The CFTC’s position is that federal derivatives law sits above that ban. The CFTC and the US Department of Justice filed the suit on October 26, 2026, in the US District Court for the District of Utah. The defendants are the State of Utah and Attorney General Derek Brown. The federal government wants both preliminary and permanent injunctions.

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