U.S. DOJ and CFTC sue Arkansas to block enforcement against Kalshi

TechFlow news, Nov. 13: According to The Block, the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC) filed suit on Thursday against Arkansas Attorney General Tim Griffin, seeking to block the state's enforcement actions against prediction market platform Kalshi and asking the court to prohibit similar state-level actions against CFTC-regulated prediction markets in the future.

The lawsuit pushes a specific case to the boundary between federal and state regulatory authority: Arkansas had previously acted against Kalshi under state law, while the DOJ and CFTC argue that CFTC-regulated prediction markets should be subject to uniform federal rules and that separate state enforcement would create regulatory fragmentation. The requested relief covers future state-level actions, so its impact extends beyond the Arkansas-Kalshi case.

Similar conflicts are emerging in multiple jurisdictions. In late October, Utah filed criminal charges against Kalshi and two of its co-founders, alleging illegal gambling; earlier this month, Polymarket and OG.com also filed suits in federal court over Arkansas enforcement, asserting federal preemption. Meanwhile, Kalshi continues to apply to the CFTC for more futures products, including crude oil and stock indices.

Source: TechFlow