US government sues Arkansas to block state case against Kalshi prediction market
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What happened
The US and the CFTC sued Arkansas and AG Tim Griffin on Nov. 12 seeking preemption of the state's Nov. 4 suit against Kalshi Inc. and KalshiEX LLC in Independence County Circuit Court, which seeks injunction, restitution, damages and civil penalties of up to $10,000 per violation. The complaint cites a CFTC interpretation of Nov. 5 requiring DCMs to drop domestic geographic restrictions within 30 days, and a joint CFTC/SEC proposal of Oct. 19 to define event contracts as swaps. It lists preemption actions in 10 other states, including Arizona, Illinois, Minnesota, New York and Utah, with Illinois's Oct. 2 order covering cases brought by the US and Coinbase Financial Markets. Watch for the court's response to the preliminary injunction request and the finalisation of the swap definition rule.
For experienced traders · Written by AI from 1 source · Wrong?
What to do
- Watch for the federal court's response to the request to block Arkansas's case against Kalshi.
- Monitor whether the CFTC and SEC finalise their proposed rule defining event contracts as swaps.
Written by AI from the sources, checked against them
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