Judge blocks Arizona criminal charges against Kalshi

A federal judge has temporarily halted Arizona's attempt to bring criminal charges against prediction market platform Kalshi. The Commodity Futures Trading Commission (CFTC) had argued that state criminal law should not interfere with federally regulated markets. Judge Michael Liburdi's order prevents Arizona from proceeding with an arraignment, siding with the CFTC's stance that federal oversight preempts state gambling laws in this context. This ruling is part of an ongoing legal battle over the classification and regulation of prediction markets, with federal courts showing a different approach than some state courts.