Justice Department and CFTC Sue Arkansas Attorney General Over Kalshi

The U.S. Department of Justice (DOJ) and Commodity Futures Trading Commission (CFTC) filed a lawsuit Thursday against Arkansas Attorney General Tim Griffin, challenging state enforcement targeting Kalshi, a prediction-market platform. The filing seeks to block future state actions against prediction markets regulated by the CFTC.

The complaint places the Arkansas action within a broader dispute over which level of government can enforce rules for prediction markets under federal oversight. Griffin is the state official named in the suit, while Kalshi is the platform targeted by Arkansas enforcement. The agencies are asking for relief that would cover future state actions against CFTC-regulated prediction markets.

The requested remedy makes the lawsuit a test of the boundary between federal oversight and state enforcement. The agencies want to prevent states from taking action against prediction markets within the CFTC's regulatory reach. The case therefore extends beyond the immediate dispute over Arkansas and Kalshi to future state actions against CFTC-regulated prediction markets.