CFTC sues Utah to protect Kalshi's prediction market operations in state where gambling is banned

The U.S. Commodity Futures Trading Commission has filed a federal lawsuit against Utah to block the state attorney general's enforcement efforts restricting Kalshi's prediction market betting. The CFTC argues its federal authority preempts Utah's ban on gambling, which is constitutionally prohibited in the state. This legal action comes after Utah prevailed in a lower court case against Kalshi, and the CFTC is intervening to maintain its position as the sole federal regulator of prediction markets despite conflicting court rulings across different appellate circuits.