CFTC sues Arkansas to defend federal jurisdiction over prediction markets

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CFTC sued Arkansas, seeking to block the state from halting event contract trading and imposing civil penalties of up to hundreds of millions of dollars on CFTC-registered exchanges. Arkansas is pursuing civil enforcement action in state court against Kalshi, a CFTC-designated contract market; CFTC says the state-level measures are preempted by federal law and says it will defend its jurisdiction over federally regulated markets. Arkansas is the 11th state sued by CFTC to protect federal sovereign interests.