CFTC Wins Restraining Order Against Arizona in Kalshi Case

The Commodity Futures Trading Commission (CFTC) announced Friday that it has won a temporary restraining order preventing the state of Arizona from pursuing its criminal case against the prediction market platform Kalshi.

“Arizona’s decision to weaponize state criminal law against companies that comply with federal law sets a dangerous precedent, and the court’s order today sends a clear message that intimidation is not an acceptable tactic to circumvent federal law,” said CFTC chairman Michael S. Selig in a statement.

Arizona has filed charges against Kalshi, accusing the company of operating an illegal gambling business in the state without a license. The announcement of the restraining order comes just a couple days after a federal judge allowed Arizona’s case to move forward, according to Bloomberg.

While the CFTC normally has five commissioners, Selig is currently the only one on the commission, following his confirmation in December and the departure of previous acting chairman Caroline Pham, who left to join the crypto company MoonPay.

The CFTC also filed suits seeking to stop similar cases from moving forward in Connecticut and Illinois.