The Justice Department and the CFTC sued Arkansas and State Attorney General Tim Griffin in the U.S. District Court for the Eastern District of Arkansas on November 12.
The official complaint is clear: the federal Commodity Exchange Act gives the CFTC exclusive jurisdiction over futures, options, and swaps—including event contracts—traded on CFTC-regulated exchanges. Arkansas had just sued Kalshi in Independence County Circuit Court on November 4, and federal officials argue that this interferes with the federal regulatory framework.
The plaintiffs ask the court to declare that the Supremacy Clause preempts the relevant state laws as applied to trading on CFTC-designated contract markets. They also seek preliminary and permanent injunctions barring the state from investigating or enforcing state laws against these regulated entities and their affiliates and partners.
Case No. 4:26-cv-01255-BSM. The 34-page complaint has been stamped and filed. This is not the same as the state’s lawsuit against Kalshi last time; this time, the federal government is suing the state.
#PredictionMarkets
The official complaint is clear: the federal Commodity Exchange Act gives the CFTC exclusive jurisdiction over futures, options, and swaps—including event contracts—traded on CFTC-regulated exchanges. Arkansas had just sued Kalshi in Independence County Circuit Court on November 4, and federal officials argue that this interferes with the federal regulatory framework.
The plaintiffs ask the court to declare that the Supremacy Clause preempts the relevant state laws as applied to trading on CFTC-designated contract markets. They also seek preliminary and permanent injunctions barring the state from investigating or enforcing state laws against these regulated entities and their affiliates and partners.
Case No. 4:26-cv-01255-BSM. The 34-page complaint has been stamped and filed. This is not the same as the state’s lawsuit against Kalshi last time; this time, the federal government is suing the state.
#PredictionMarkets
