Announced on October 27, 2026, the case argues that federal law gives the CFTC sole authority over commodity derivatives, including event contracts, and that Utah’s state court actions against registered markets conflict with it. Currently, Utah is among 10 states the CFTC has taken legal action against.
Michael Selig, CFTC Chairman, said:
“Congress entrusted the CFTC to be the federal regulator with sole responsibility to oversee these markets. As I’ve said before, the CFTC has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives, and that’s exactly what we’ll do.”
The federal suit follows Utah’s civil complaint against Kalshi, 6 related entities, and 2 Susquehanna trading firms that supply liquidity to its markets. Filed in the state’s Third District Court, it accuses Kalshi of creating a public nuisance by getting around Utah’s 130-year-old gambling ban and seeks to block contracts on sports, elections, and other events for Utah residents. The state’s preliminary estimate puts Kalshi’s fees from Utah accounts at $30.6 million to $61.2 million.
In August 2026, U.S. District Judge Robert Shelby rejected Kalshi’s argument that federal commodities law overrides Utah’s gambling restrictions, leading Kalshi to appeal to the Tenth Circuit, which refused its request for an emergency injunction while the appeal is pending.
