CFTC sues Utah to block action against prediction markets
The US state filed a lawsuit against Kalshi last week, seeking to recover up to $60 million in profits related to event contracts on prediction markets.
The US Commodity Futures Trading Commission (CFTC) announced legal action against Utah officials after the state’s attorney general said he would sue to compel Kalshi and its affiliates to return up to $60 million in profits allegedly obtained illegally.
In a Monday filing in the US District Court for the District of Utah, lawyers for the commodities regulator sued the State of Utah and its Attorney General Derek Brown a week after officials announced legal action against prediction market platform Kalshi and its affiliates over allegedly illegal betting.
According to the CFTC, Utah was attempting to bypass congressional intent to “federally preempt state law” by “restrict[ing] the functioning of CFTC-registered exchanges.” CFTC Chair Michael Selig has been claiming for months that the regulator has “exclusive jurisdiction” over prediction markets, leading to several lawsuits between state and federal authorities.