Trump's CTFC Steps In to Defend Kalshi As Utah Brings Criminal Charges Against Execs

The Commodity Futures Trading Commission (CFTC) has taken legal action against the state of Utah in an attempt to safeguard its exclusive regulatory authority over federally registered prediction markets, as Utah has filed criminal charges against Kalshi and its founders for allegedly breaching gambling regulations. According to The Verge, Utah Attorney General Derek Brown has accused Kalshi co-founders Tarek Mansour and Luana Lopes Lara of 12 counts of online gambling promotion, one count of a pattern of unlawful activity, and general gambling promotion.

Brown declared that gambling is illegal in Utah, regardless of whether one places the bet, operates the game, or promotes it. The CFTC contends that Utah's gambling laws are applicable to Kalshi, as a federal court has already affirmed this notion. Kalshi continued to accept bets from Utah residents despite this, which the CFTC claims is an illegal act.

The CFTC, whose President Trump's son, Donald Trump Jr., is a paid consultant for both companies, filed a civil lawsuit against Utah, arguing that the federal government should be the sole regulator of these prediction markets.