DOJ and CFTC Seek Halt to Arizona Action Against Kalshi
Cointelegraph
The DOJ and CFTC have asked a federal court to block Arizona from applying state gambling laws to Kalshi’s federally regulated event contracts.Summary
The US Department of Justice and the Commodities and Futures Trading Commission have requested a federal court injunction to prevent Arizona from enforcing state gambling laws against Kalshi. The agencies argue that because Kalshi’s event contracts are federally regulated as swaps under the Commodity Exchange Act, they fall under the exclusive jurisdiction of the CFTC. This legal move challenges Arizona’s criminal charges against Kalshi, which labeled the platform an illegal gambling business. The outcome of this case is expected to set a critical precedent regarding the balance of power between federal commodities oversight and state-level betting regulations.
(Source：Cointelegraph)