Arizona Attorney General Kris Mayes’ case against the Kalshi prediction market appears to have hit a snag.
The Commodity Futures Trading Commission announced on friday which has obtained a temporary restraining order preventing the State from continuing its criminal case against Kalshi (whose CEO, Tarek Mansour, is pictured above).
“Arizona’s decision to weaponize state criminal law against companies that comply with federal law sets a dangerous precedent, and today’s court order sends a clear message that intimidation is not an acceptable tactic to circumvent federal law,” CFTC Chairman Michael S. Selig said in a statement.
While the CFTC normally has five commissioners, Selig is currently the only one on the commission, following his confirmation in December and the departure of former interim president Caroline Pham (who left to join cryptocurrency company MoonPay).
Arizona has filed charges against Kalshi accusing the company of operating an illegal gambling business in the state without a license. The announcement of the restraining order comes just a couple of days after a federal judge allowed the Arizona case to move forward. according to Bloomberg.
The CFTC also filed lawsuits to block similar cases from moving forward in Connecticut and Illinois.
