Federal Commission Halts Arizona’s Criminal Case Against Prediction Market Kalshi

Sun, 12 Apr 2026 07:22:00 +0200

The Commodity Futures Trading Commission (CFTC) has successfully obtained a temporary restraining order that prevents Arizona from continuing its criminal case against prediction market platform Kalshi. The case, brought by Arizona Attorney General Kris Mayes, accused Kalshi of operating an illegal gambling enterprise within the state without a proper license. In response, CFTC Chairman Michael S. Selig sharply criticized Arizona's move, asserting that using criminal enforcement against a company that complies with federal law sets a dangerous precedent. The federal court’s temporary halt signals a significant win for both Kalshi and the broader fintech industry, suggesting boundaries between state-level jurisdiction and federal financial regulation remain contested.

The ruling came just days after a federal judge had allowed Arizona’s prosecution to proceed, marking a sudden reversal in the company’s fortune. Kalshi, led by CEO Tarek Mansour, operates federally regulated prediction m