CFTC sues Utah to block state action against Kalshi prediction markets

Key points

• Utah's attorney general said he would sue to make Kalshi and its affiliates return up to $60m in profits allegedly obtained illegally.
• CFTC Chair Michael Selig says the regulator has exclusive jurisdiction over prediction markets, with cases also pending in several other states.

The US Commodity Futures Trading Commission has sued Utah and its attorney general over the state's action against prediction markets, Cointelegraph reports. The filing in the US District Court for the District of Utah on Monday came a week after Utah officials said they would take legal action against Kalshi and its affiliates.

The CFTC argues that Utah is trying to bypass congressional intent by restricting how CFTC-registered exchanges operate. It says the event contracts at issue are swaps under federal law and that the exchanges offering them are CFTC-regulated Designated Contract Markets.

CFTC Chair Michael Selig has said for months that the regulator holds exclusive jurisdiction over prediction markets, which has led to several suits between state and federal authorities.

The dispute may end up before the Supreme Court.

What to watch: The Supreme Court has not said whether it will hear New Jersey's case against Kalshi, a decision pending as of Tuesday.

Read the full story on Cointelegraph →