A federal judge on Oct. 30 set a Nov. 6 status and scheduling conference in the U.S. government and Commodity Futures Trading Commission’s effort to stop Utah’s civil and criminal enforcement actions against Kalshi, according to Prediction Frontier. The court date follows Utah’s filing of criminal charges against Kalshi and two company executives a day earlier, escalating the state’s dispute with federally regulated prediction markets.
Judge sets November 6 conference after Utah charges Kalshi
The Nov. 6 conference puts the federal challenge to Utah’s actions on an immediate court timetable. Utah filed its criminal case on Oct. 29, as reported by the Associated Press, after the CFTC had already moved to challenge the state’s enforcement position in federal court.
The scheduling order concerns the federal government and the CFTC’s bid to block both civil and criminal action by Utah against Kalshi. The available reporting on the order does not state what substantive relief, if any, the court will consider at the Nov. 6 conference.
CFTC seeks to block Utah enforcement
The CFTC filed its complaint in the U.S. District Court for the District of Utah on Oct. 26. It seeks declaratory relief as well as preliminary and permanent injunctions, arguing that Utah’s gambling laws are preempted when applied to transactions on markets regulated by the agency.
In its complaint, the agency asks the court to prevent Utah from applying those laws to CFTC-regulated markets. The case centers on the boundary between state gambling enforcement and the federal regulatory framework governing registered contract markets.
Utah is among 10 state enforcement fights cited by CFTC
Utah is part of a wider set of state disputes identified by the CFTC. When it announced the Utah lawsuit on Oct. 27, the agency said it had initiated proceedings against nine other states and maintained that federal law preempts state efforts to use their laws against CFTC-registered contract markets.
The agency’s Oct. 27 announcement framed the Utah case as a challenge to state enforcement against federally regulated venues, rather than only a dispute involving Kalshi. The Nov. 6 conference is the next announced event in the Utah proceeding.
