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Federal agencies seek court intervention against Utah’s Kalshi prosecution

Legal Sports Report reports that the CFTC and the Justice Department asked a federal judge to block Utah from moving forward with its criminal and civil cases against Kalshi, seeking a temporary restraining order and preliminary injunction. The filing came one day after Utah filed 14 criminal charges against Kalshi and its co-founders, and the agencies argued a state cannot criminalize trading in contracts under a federal regulator's exclusive jurisdiction.

The CFTC and the Justice Department have asked a federal judge to stop Utah from pursuing criminal and civil cases against Kalshi, according to Legal Sports Report.

The agencies are seeking a temporary restraining order and a preliminary injunction. Their request puts the scope of federal regulatory authority at the center of the dispute.

Federal jurisdiction at issue

The filing came one day after Utah brought 14 criminal charges against Kalshi and its co-founders, according to Legal Sports Report. The federal request seeks to halt both the criminal prosecution and the state’s civil proceedings.

The agencies argue that a state cannot make trading in contracts a crime when those contracts fall within a federal regulator’s exclusive jurisdiction. That is the position advanced in their filing, not a reported ruling by the judge.

What it means for prediction markets

  • Immediate focus: Whether the judge grants the temporary restraining order or preliminary injunction sought by the federal agencies.
  • Jurisdictional stakes: The dispute tests the agencies’ claim that exclusive federal oversight prevents state criminal enforcement against trading in covered contracts.
  • Limits of the update: The reported development is a request for court intervention; it does not establish that Utah’s cases have been halted.
KalshiCFTCInfiniti MarketsInfiniti Signals

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    Legal Sports Report
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