Arizona Attorney General Kris Mayes’ lawsuit against prediction market Kalshi appears to have hit an impasse.
The Commodity Futures Trading Commission announced Friday that it has obtained a temporary restraining order preventing the state from filing criminal charges against Kalshi (pictured above of Kalshi CEO Tarek Mansour).
“Arizona’s decision to weaponize state criminal law against businesses that comply with federal law sets a dangerous precedent, and today’s court order sends a clear message that intimidation cannot be tolerated as a tactic to evade federal law,” CFTC Chairman Michael S. Selig said in a statement.
The CFTC typically has five members, but Selig is the only one currently on the commission following her confirmation in December and the departure of former acting chair Caroline Pham (who left to join cryptocurrency company MoonPay).
The state of Arizona prosecuted Calci, accusing him of operating an illegal gambling operation without a state license. According to Bloomberg, the announcement of the injunction comes just days after a federal judge allowed the Arizona case to proceed.
The CFTC has also filed lawsuits to block similar cases from proceeding in Connecticut and Illinois.
