Summary

  • The U.S. Department of Justice and the CFTC have filed a lawsuit to block state regulatory action against prediction-market platform Kalshi.
  • The Justice Department and the CFTC said the Commodity Exchange Act (CEA) gives the CFTC exclusive authority to oversee prediction-market platforms such as Kalshi.
  • The two agencies asked the court for a preliminary injunction and a permanent injunction barring Arkansas’s regulatory action.

Forecast Trend Report by Period

The U.S. Department of Justice and the Commodity Futures Trading Commission have sued to block state regulatory action against prediction-market platform Kalshi.

The Block reported on November 13 that the Justice Department and the CFTC filed suit against Arkansas Attorney General Tim Griffin, seeking to halt the state's action against Kalshi.

Griffin had sued Kalshi on November 4, alleging the company was operating an illegal gambling platform.

In response, the Justice Department and the CFTC argued that the Commodity Exchange Act gives the CFTC exclusive authority to oversee regulated prediction-market platforms such as Kalshi.

The agencies also said event contracts traded on Kalshi qualify as swaps under federal law, meaning state regulation would infringe on federal authority.

They asked the court for a preliminary injunction and a permanent injunction barring Arkansas from taking regulatory action.

Uk Jin