According to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice jointly filed a request with a federal court on Tuesday evening, seeking to block Arizona from enforcing its state gambling laws against prediction market operator Kalshi. The two agencies argue that Kalshi’s contracts linked to real-world events such as sports and elections are essentially financial derivatives (swaps) and should fall under the Commodity Exchange Act and federal regulatory oversight, rather than state-level gambling regulations. Arizona had previously filed criminal charges against Kalshi, with a court hearing scheduled for April 13. Currently, court rulings across different jurisdictions are divided—the federal appeals court in New Jersey has leaned toward supporting federal regulatory authority, while other district courts remain open to the state’s arguments.