UPDATE: CFTC details federal lawsuit against Utah over prediction markets
CIE News ·
Update to CFTC files lawsuit against Utah over prediction market oversight
Confirmed by 2 independent news outlets.
The CFTC and U.S. government filed case 2:26-cv-01055 against Utah and its attorney general, marking the agency's 10th state challenge and arguing the Commodity Exchange Act preempts state bans on event contracts.
The Commodity Futures Trading Commission and the U.S. government filed a federal complaint on October 26, 2026, against the State of Utah and Attorney General Derek Brown under case number 2:26-cv-01055. As previously reported, the legal action targets Utah's enforcement efforts against prediction market platform Kalshi, marking the agency's 10th state challenge over derivatives jurisdiction.
According to reports from crypto.news and Bitcoin.com News, the federal filing in the U.S. District Court for the District of Utah requests preliminary and permanent injunctions against state investigations and enforcement. The CFTC argues under the Constitution's Supremacy Clause that the Commodity Exchange Act grants the federal agency exclusive jurisdiction over event-contract derivatives hosted on designated contract markets, preempting local gambling statutes and public-nuisance laws.
CFTC Chairman Michael S. Selig stated that Congress gave the agency sole responsibility to oversee these markets and that the commission has the responsibility to defend its exclusive jurisdiction over commodity derivatives. The federal action follows Utah's October 20, 2026, lawsuit against Kalshi, in which the state alleged the platform ran an illegal online casino and sought to recover an estimated $30.6 million to $61.2 million in trading fees.
Key facts
- Case No. 2:26-cv-01055 filed Oct 26
- CFTC's 10th state challenge
- Claims CEA preempts state bans
- Targets Utah AG Derek Brown
Read the original at crypto.news