US court blocks Arizona from prosecuting prediction market Kalshi

A U.S. federal court has blocked Arizona's attempt to criminally prosecute prediction market Kalshi, CoinDesk reported. Arizona had previously threatened criminal charges, arguing that Kalshi's products constitute illegal gambling under state law. In response, the U.S. Commodity Futures Trading Commission (CFTC) sued Arizona and two other states, asserting that prediction markets are swaps under its jurisdiction and that federal law preempts state law.