"U.S. District Judge Michael Liburdi issued a temporary restraining order on Friday, finding that the CFTC had made a clear showing that it is likely to succeed on the merits of its claim that Arizona's gambling laws are preempted by the Commodity Exchange Act."
"The CFTC's separate motion succeeded on different grounds, arguing that Arizona's prosecution directly interfered with the agency's exclusive federal authority over swaps traded on designated contract markets, triggering the Supremacy Clause."
"The ruling came two days after Liburdi denied Kalshi's own motion for a preliminary injunction against Arizona, stating it was premature to rule on whether the federal Commodity Exchange Act overrides Arizona's gambling laws."
A federal judge issued a temporary restraining order blocking Kalshi's arraignment in Arizona, citing the likelihood of the CFTC's success on federal preemption. Arizona filed 20 criminal charges against Kalshi, marking the first such action against a prediction market operator. The ruling indicates a split in federal courts regarding CFTC jurisdiction versus state authority. The CFTC argued that Arizona's prosecution interfered with its exclusive federal authority over swaps, supported by the Department of Justice. The restraining order remains effective through April 24.
Read at news.bitcoin.com
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