Add as a preferred source on GoogleDOJ and CFTC Sue Arkansas to Block Enforcement Against Kalshi
The complaint argues federal commodities law gives the CFTC exclusive jurisdiction over futures, options and swaps traded on regulated platforms.
The U.S. Department of Justice and Commodity Futures Trading Commission (CFTC) have sued Arkansas and Attorney General Tim Griffin, asking a federal court to stop the state from taking enforcement action against prediction-market platform Kalshi.
The case was filed in the U.S. District Court for the Eastern District of Arkansas. In the complaint, the federal agencies argue that the Commodity Exchange Act gives the CFTC exclusive jurisdiction over futures, options and swaps traded on regulated platforms.
The agencies are asking the court to bar Arkansas from applying state enforcement measures to Kalshi. Their argument puts the reach of federal commodities regulation at the center of the dispute, as the state and federal governments seek different outcomes for the platform.
Griffin sued Kalshi in Arkansas state court on Nov. 4, alleging that it operates an illegal gambling platform. The federal lawsuit follows that case and seeks to keep Arkansas from pursuing enforcement against Kalshi.
Riza Dagoc
Riza Dagoc reports on regulation, investing and the digital-asset business for TokenPost. Send corrections or tips to info@tokenpost.com.