US Federal Judge Temporarily Halts Tennessee's Injunction Against Kalshi

According to reports, a US federal judge has temporarily halted Tennessee's enforcement action against prediction market operator Kalshi, freezing a cease-and-desist notice in the state. The court will review whether the platform regulated by the US Commodity Futures Trading Commission (CFTC) should be exempt from state gambling laws. The ruling suspends enforcement actions by the Tennessee Sports Wagering Committee and the state Attorney General. Previously, regulators ordered Kalshi, Polymarket, and Crypto.com to cease offering sports-related contracts to Tennessee residents and to void open contracts by January 31 and return customer deposits. Tennessee officials initially warned that non-compliance could result in fines of up to $25,000 per violation and possible referral to law enforcement. Kalshi argued that the dispute is a jurisdictional conflict between state gambling enforcement and federal commodity law. The company stated in its federal appeal that Tennessee's actions violated the CFTC's exclusive jurisdiction over designated contract market derivatives trading, and argued that the state's threatened enforcement actions have been preempted by the Commodity Exchange Act. (The Block)

Related Articles