CFTC sues Utah over legal action against prediction markets

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The US Commodity Futures Trading Commission (CFTC) has sued Utah and its attorney general, Derek Brown, seeking to block the state’s action against prediction market platform Kalshi and its affiliates.

The lawsuit, filed on Monday in the US District Court for the District of Utah, follows the state’s announcement that it would seek to force Kalshi and related companies to return up to $60 million in profits allegedly obtained illegally through betting.

The CFTC argues that federal law gives it exclusive authority over prediction markets and that Utah is attempting to restrict exchanges registered with the regulator. The dispute is part of a wider legal conflict between state authorities and the CFTC over who has the power to regulate event-based contracts.