The Commodity Futures Trading Commission filed a federal lawsuit against Utah, which is seeking to prohibit prediction markets subject to federal regulation. Utah specifically alleges that Kalshi, a platform registered with the CFTC, is offering event contracts on sports and other subjects in violation of state gambling laws. The CFTC and the U.S. Department of Justice argue that the Commodity Exchange Act grants them exclusive authority over derivatives traded on registered exchanges. CFTC Chairman Mike Selig said Congress entrusted the agency with establishing uniform national regulation of prediction markets. The case is the agency’s tenth legal challenge against a state and could restrict Utah’s enforcement against contracts covered by federal jurisdiction if the court rules in the CFTC’s favor.
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