CFTC advances lawsuit against Utah over prediction markets
CIE News ·
Based on reporting by Bitcoin.com News; not yet independently confirmed.
The CFTC is seeking an injunction in federal court to block Utah from enforcing gambling laws against Kalshi, asserting exclusive federal authority over registered prediction markets.
Federal court proceedings involving the Commodity Futures Trading Commission (CFTC) and Utah authorities progressed in early November 2026 over regulatory preemption of retail prediction markets. The CFTC sued Utah in federal court on October 27, seeking to stop state officials from applying local gambling statutes to federally registered contract markets. According to Bitcoin.com News, the federal agency maintains that the Commodity Exchange Act grants it exclusive oversight over these derivatives.
The federal complaint followed an October 20 civil enforcement action by Utah against prediction-market platform Kalshi. State authorities subsequently escalated the dispute on October 28 by filing criminal charges against Kalshi and co-founders Tarek Mansour and Luana Lopes Lara, alleging gambling violations and a pattern of unlawful activity. Kalshi has disputed the accusations, describing the enforcement as unconstitutional regulatory overreach, and no defendant has been convicted.
The District of Utah is reviewing the CFTC's petition for an injunction to pause state enforcement. Utah contends that event contracts covering sports and other topics represent unlawful gambling that falls under state jurisdiction.
Key facts
- CFTC lawsuit filed Oct. 27
- Kalshi executives charged
- Preemption injunction pending
- District of Utah review
Read the original at Bitcoin.com News