Update
CFTC Sues Utah to Shield Kalshi from Gambling Crackdown
The Commodity Futures Trading Commission (CFTC) has filed a lawsuit in federal court against the State of Utah to prevent the state from shutting down Kalshi’s prediction markets. Kalshi, a company that operates as a designated contract market (DCM) under CFTC supervision, offers event contracts such as those related to elections and sports. The CFTC argues that federal derivatives law takes precedence over state gambling laws, particularly in the case of Kalshi’s DCM operations. The lawsuit was filed on October 26, 2026, in the US District Court for the District of Utah, with the defendants being the State of Utah and Attorney General Derek Brown. The CFTC seeks preliminary and permanent injunctions to block Utah from enforcing its gambling laws against Kalshi.