The U.S. Department of Justice and the Commodity Futures Trading Commission filed a motion in federal court on Thursday to block Arizona from pursuing criminal and civil enforcement actions against prediction market platform Kalshi. The regulators argue that event contracts regulated at the federal level under CFTC oversight fall outside the state's jurisdiction.
The filing represents a direct challenge to state-level enforcement against prediction markets, asserting that federal commodity law preempts Arizona's action. Kalshi operates as a CFTC-regulated derivatives exchange offering binary event contracts.
Sources: U.S. court documents
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