Court Blocks Tennessee From Taking Action on Kalshi

A Tennessee federal judge has temporarily blocked state regulators from taking action against Kalshi, a prediction markets platform that sued the state after being ordered to cease offering sports event contracts. Judge Aleta Trauger granted Kalshi’s motion for a preliminary injunction and temporary restraining order against the Tennessee Sports Wagering Council and the state’s attorney general. The judge reasoned that Kalshi would suffer irreparable harm and is likely to succeed in its claim that it falls under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC) as a federally designated derivatives exchange. The Tennessee Sports Wagering Council had issued cease-and-desist letters to Kalshi, Polymarket, and Crypto.com, accusing them of offering sports wagering products without a license and demanding refunds to users. Kalshi argues that state regulation infringes upon the federal framework for derivatives trading. Similar lawsuits have yielded mixed results, with courts in Nevada and New Jersey siding with Kalshi, while a Maryland judge denied a similar request. The current injunction remains in effect until a preliminary injunction hearing on January 26th, allowing Kalshi to continue operating in Tennessee.

(Source：Cointelegraph)