Kalshi wins temporary pause in Arizona criminal case
The Commodity Futures Trading Commission announced Friday that it has won a temporary restraining order preventing Arizona from pursuing its criminal case against Kalshi.
Arizona Attorney General Kris Mayes’ case against prediction market Kalshi appears to have hit a snag.
The Commodity Futures Trading Commission announced Friday that it has won a temporary restraining order preventing the state from pursuing its criminal case against Kalshi (whose CEO Tarek Mansour is pictured above).
“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.
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 crypto company MoonPay).
Related Knowledge Center: Prediction markets
Platforms are offering a way for users trade positions — place bets — on a wide range of possible events, and newsrooms are starting to incorporate the data.
As the business rapidly grows, critics and opponents are pushing back. Numerous states have argued that the markets are gambling, and sports gambling in particular is regulated by the state. The Commodity Futures Trading Commission, now led by a Trump appointee, disagrees — as did a federal district court judge in a suit involving New Jersey.
Critics see some of the markets as, particularly in the case of military actions, indefensible, and note as well that some large, well-timed bets — “event contracts” — suggest an abuse of insider knowledge of federal actions.