Source: Coindesk
Published by source: Oct 27, 2026, 07:07 PM UTC
The U.S. Commodity Futures Trading Commission filed a federal lawsuit on Tuesday to halt Utah's enforcement effort against Kalshi, arguing event contracts provide public information and that the CFTC is the sole regulator of prediction markets.
The CFTC is asking the court to stop the Utah attorney general's action from last week that sought to restrict Kalshi from offering gambling to state residents, where gambling is constitutionally banned. CFTC Chairman Mike Selig said event contracts serve hedging and investment purposes and provide information about future events. The dispute involves conflicting court rulings: three federal appellate courts have issued two decisions siding with states and one with Kalshi, and a Utah district court judge sided with the state in a case under appeal. Former CFTC Chairman Gary Gensler and former Senator Chris Dodd have filed briefs arguing the Dodd-Frank Act did not transfer sports betting jurisdiction from states to the CFTC.