US Department of Justice and CFTC Sue Arkansas to Block Enforcement Action Against Kalshi

Odaily reports: The U.S. Department of Justice (DOJ) and the Commodity Futures Trading Commission (CFTC) filed a lawsuit on Thursday local time against Arkansas Attorney General Tim Griffin, seeking to block the state from taking enforcement action against prediction market platform Kalshi and to prohibit states from taking similar actions against CFTC-regulated prediction market platforms in the future.

The lawsuit claims that the Commodity Exchange Act grants the CFTC exclusive jurisdiction over commodity futures, options, and swaps traded on regulated platforms, and that Arkansas's attempt to prevent Kalshi from offering related event contracts infringes on federal regulatory authority. Previously, Arkansas Attorney General Tim Griffin sued Kalshi on November 4, alleging that it operates an illegal gambling platform that allows users to bet on the outcomes of various events. (The Block)