Coindesk reported that a U.S. federal court put a stop to Arizona's move to criminally prosecute prediction market Kalshi. Previously, Arizona had announced criminal charges, claiming that the products offered by Kalshi constituted gambling, which violates state law. In response, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Arizona and two other states, stating that prediction markets fall under swap transactions within CFTC's jurisdiction, and federal law preempts state law.
