CFTC Sues Utah to Shield Prediction Markets Like Kalshi
• The CFTC sued Utah and Attorney General Derek Brown in federal court, a week after Utah moved to claw back up to $60M in allegedly illegal profits from Kalshi.
• The agency argues event contracts are federally regulated swaps on CFTC-registered markets, so states can't override them.
• Similar fights are live in Michigan, Ohio, Kentucky, Nevada, Massachusetts, Wisconsin and New York, and New Jersey has asked the Supreme Court to step in.
This likely ends at the Supreme Court, and the ruling will shape the whole sector.
Not investment advice. DYOR.
• The CFTC sued Utah and Attorney General Derek Brown in federal court, a week after Utah moved to claw back up to $60M in allegedly illegal profits from Kalshi.
• The agency argues event contracts are federally regulated swaps on CFTC-registered markets, so states can't override them.
• Similar fights are live in Michigan, Ohio, Kentucky, Nevada, Massachusetts, Wisconsin and New York, and New Jersey has asked the Supreme Court to step in.
This likely ends at the Supreme Court, and the ruling will shape the whole sector.
Not investment advice. DYOR.
