The US Justice Department and commodities regulator asked a federal court to block Arizona’s action against Kalshi, arguing federally regulated event contracts fall under CFTC jurisdiction.
The US Department of Justice (DOJ) and Commodities and Futures Trading Commission (CFTC) asked a federal court to block Arizona from enforcing state gambling law against Kalshi’s event contracts, arguing that the contracts fall under the CFTC’s exclusive authority over swaps markets.
The Wednesday filing argues that event contracts listed on federally regulated platforms such as Kalshi are swaps under the Commodity Exchange Act and therefore fall within the CFTC’s exclusive jurisdiction.
The filing says Arizona’s enforcement effort unlawfully intrudes on the CFTC’s exclusive jurisdiction over federally regulated event-contract markets.
