CFTC sues Utah to block state crackdown on Kalshi prediction markets
Briefing by News4U · First published
The U.S. Commodity Futures Trading Commission sued Utah and Attorney General Derek Brown after the state moved to stop Kalshi from offering event contracts it calls illegal gambling.
The U.S. Commodity Futures Trading Commission filed suit Monday in the U.S. District Court for the District of Utah against the State of Utah and Attorney General Derek Brown, seeking to halt Utah's enforcement effort to restrict prediction-market platform Kalshi from offering event contracts to state residents, CoinDesk and Cointelegraph reported. [1] [2]
Utah last week moved against Kalshi, with Brown saying anyone offering gambling to Utahns is on notice that it is illegal in the state. Cointelegraph reported Brown said he would sue to compel Kalshi and affiliates to return up to $60 million in profits allegedly obtained illegally. [1] [2]
CFTC Chairman Mike Selig said event contracts serve hedging and investment purposes and provide public information about future outcomes, arguing the agency has exclusive jurisdiction over CFTC-regulated designated contract markets. The commission says it is battling 10 states in court amid split federal appellate rulings, while former CFTC chair Gary Gensler and former Senator Chris Dodd have filed briefs backing the states' view. [1] [2]
Sources
- U.S. agency hits Utah with lawsuit to shield Kalshi's ability to offer betting there
CoinDesk · · Full text
- CFTC sues Utah to block action against prediction markets
Cointelegraph · · Full text