Tennessee court temporarily halts enforcement against Kalshi

A U.S. federal court in Tennessee has temporarily suspended the state's regulatory enforcement against prediction market platform Kalshi. The court granted an injunction, ruling that the platform's sports event contracts are likely to be considered "swaps" under the federal Commodity Exchange Act (CEA), countering the state's attempt to sanction them as illegal sports betting. As a result, the state government cannot enforce its sports gaming laws against Kalshi while the lawsuit is ongoing.