US Judge Blocks Arizona Criminal Case Against Kalshi
A judge blocked Arizona from pursuing criminal charges against Kalshi. The CFTC sought the order to stop states from regulating federally overseen firms.
A federal judge in the United States has issued a temporary restraining order to halt a criminal case brought by the state of Arizona against the prediction market operator Kalshi. The decision comes after the Commodity Futures Trading Commission (CFTC) filed a lawsuit to prevent state-level regulation of the industry, asserting federal jurisdiction over the platform.
The ruling was delivered by U.S. District Judge Michael Liburdi following a hearing in Arizona. The court's order specifically prevents the state from pursuing criminal charges against entities designated as contract markets under CFTC regulation. The federal agency argued that state-level criminal actions against compliant firms undermine the established federal regulatory framework.
