Arizona Attorney General Kris Mayes’ case against prediction market Kalshi faces a setback.
The Commodity Futures Trading Commission announced it has secured a temporary restraining order preventing the state from continuing its criminal case against Kalshi (CEO Tarek Mansour is pictured above).
“Arizona’s decision to use state criminal law against companies that comply with federal law sets a dangerous precedent, and the court’s order today clearly indicates that intimidation is not an acceptable method to bypass federal law,” stated CFTC Chairman Michael S. Selig.
While the CFTC typically has five commissioners, Selig is currently the only one, following his confirmation in December and the departure of former acting chairman Caroline Pham (who joined crypto company MoonPay).
Arizona has filed charges against Kalshi accusing the company of running an illegal gambling business in the state without a license. The restraining order announcement comes shortly after a federal judge allowed Arizona’s case to proceed, according to Bloomberg.
The CFTC has also filed suits to prevent similar cases from advancing in Connecticut and Illinois.