CFTC sues Utah to block state action against Kalshi prediction markets

The U.S. Commodity Futures Trading Commission filed a lawsuit against Utah and its Attorney General Derek Brown, seeking to prevent the state from compelling Kalshi to return up to $60 million in allegedly illegal profits. CFTC argues Utah is attempting to bypass federal preemption by restricting CFTC-registered exchanges, asserting the regulator has exclusive jurisdiction over prediction markets as 'swaps' under the Commodity Exchange Act.