PANews reported on April 9th ​​that, according to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice, in court filings on the evening of April 8th, requested a federal court to block Arizona from enforcing its betting laws against prediction market operator Kalshi. Regulators argue that contracts based on real-world events such as sports and elections fall under the category of financial derivatives known as "swaps" and should be subject to federal regulation rather than state betting laws.

Arizona has filed criminal charges against Kalshi, arguing that sports outcome contracts are no different from traditional betting and should be regulated as gambling. A recent federal court ruling in New Jersey favored Kalshi, finding his sports contracts permissible in principle under federal law, but courts in other jurisdictions have tended to support the state government's arguments. The outcome of this case will determine whether the prediction market operates nationwide under a uniform federal framework or is subject to the varying gambling regulations of each state.