CFTC Sues Utah, Warns Kalshi Crackdown Threatens Federal Oversight

The CFTC has sued Utah over its gambling crackdown on prediction markets, arguing the state's action against Kalshi threatens federal oversight of derivatives. The dispute involves potentially $61.2 million in trading fees and pits Washington's derivatives regulator against one of the strictest state gambling prohibitions. Traders should watch how the case defines federal versus state authority over event contracts, which could shape the legal footing for prediction-market products.