The U.S. Commodity Futures Trading Commission (CFTC) has filed a lawsuit seeking to block Utah from restricting Kalshi's prediction market products. The CFTC argues that federal authority over prediction markets takes precedence over state authority, while Utah's constitution prohibits gambling. Utah has prevailed in a federal district court case, which is now on appeal. Utah Attorney General Derek Brown has accused Kalshi of operating an online casino. Former CFTC Chairman Gary Gensler has separately argued before the U.S. Supreme Court that the Dodd-Frank Act did not give the CFTC jurisdiction over sports betting, which had previously been regulated by the states.