CFTC sues Utah over prediction market regulation

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The US Commodity Futures Trading Commission (CFTC) has sued Utah and its Attorney General Derek Brown to prevent the state from taking action against prediction market platform Kalshi and its affiliates.

The lawsuit, filed on Monday in a federal court in Utah, follows the state’s announcement that it would seek to recover up to $60 million in profits allegedly earned illegally by the companies.

The CFTC argues that federal law gives it exclusive authority over event contracts traded on registered exchanges. The case adds to a series of legal disputes between state authorities and the federal regulator over who has jurisdiction over prediction markets.