Kalshi’s Federal Argument—and a Growing Legal Pattern

[etfs]

Kalshi responded by suing the state, arguing that Tennessee overstepped its authority. The company says it falls under the exclusive jurisdiction of the Commodity Futures Trading Commission as a federally designated derivatives exchange, leaving no room for state-level gambling regulation.

This legal strategy has worked before. Courts in Nevada and New Jersey have previously sided with Kalshi and blocked similar state actions, though a Maryland judge declined to do so. In Tennessee, enforcement is now frozen until a preliminary injunction hearing on Jan. 26, keeping the platform live while the broader regulatory battle unfolds.

[cryptoenthusiast]

if nevada and new jersey already lost this fight, not sure why tennessee thought it’d be different