CFTC sues Utah to block state prediction market enforcement

The Commodity Futures Trading Commission said on Tuesday it has sued Utah to block the state from using its laws to shut down CFTC registered contract markets, after Utah filed civil enforcement actions in state court against regulated markets including Kalshi.

Why it matters: Utah is the tenth state the commission has sued over prediction markets, and the case puts federal preemption of state gambling law for event contracts before the same federal district that ruled for Utah against Kalshi in August.

Data as of CFTC press release 9315-26 of October 27, 2026, read in full in this run, with SBC Americas reporting on the complaint and on Utah's October 20, 2026 state court suit against Kalshi and two Susquehanna firms. Developing item.

The Commodity Futures Trading Commission announced on Tuesday that it has filed a lawsuit against Utah to block the state’s efforts to shut down CFTC registered contract markets using state laws, saying Utah’s enforcement obstructs Congress’s decision to federally preempt state law. Chairman Michael Selig said Utah seeks to shut down prediction markets across a wide variety of markets and that the commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives.

The federal suit answers Utah’s October 20 state court complaint against Kalshi and two Susquehanna trading firms, which accused them of running an illegal gambling operation and estimated Kalshi collected 30.6 million to 61.2 million dollars in fees from Utah accounts, SBC Americas reported. The commission said it has also initiated legal proceedings against nine other states and has submitted briefs in four federal courts of appeal and one state supreme court.

CFTC sues Utah to block state prediction market enforcement

Sources