Arizona's Case Against Kalshi Hits a Snag
A temporary restraining order has been issued by the Commodity Futures Trading Commission, preventing Arizona from pursuing its criminal case against prediction market Kalshi.
Federal Agency Steps In
The Commodity Futures Trading Commission announced Friday that it has won a temporary restraining order preventing Arizona from pursuing its criminal case against Kalshi. The move comes after Arizona filed charges against the company, accusing it of operating an illegal gambling business in the state without a license.
“Arizona’s decision to weaponize state criminal law against companies that comply with federal law sets a dangerous precedent, and the court’s order today sends a clear message that intimidation is not an acceptable tactic to circumvent federal law,” said CFTC Chairman Michael S. Selig in a statement.
CFTC Takes Action Against Other States
The CFTC also filed suits seeking to stop similar cases from moving forward in Connecticut and Illinois. This move suggests that the agency is taking a proactive approach to protect companies that comply with federal law.
- The CFTC normally has five commissioners, but Chairman Selig is currently the only one on the commission, following his confirmation in December and the departure of previous acting chairman Caroline Pham.
- Arizona’s case against Kalshi appears to have hit a snag, but the outcome of the case is still uncertain.
- The move by the CFTC is a significant development in the ongoing debate over the regulation of prediction markets and other digital assets."
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