The post Arizona Temporarily Stands Down on Kalshi Prosecution as Federal Ruling Blocks Monday Arraignment – iGaming Bitcoin News appeared on BitcoinEthereumNews.com.

Key Takeaways: A federal judge blocked Kalshi’s Monday arraignment in Arizona, ruling the CFTC is likely to succeed on federal preemption. Arizona filed the first criminal charges against a prediction market operator, with 20 counts, including election and sports wagering. Federal courts are split, with the Third Circuit backing CFTC jurisdiction while Nevada and Massachusetts side with the states. Federal Government Succeeds Where Kalshi Itself Failed The arraignment of Kalshi in Maricopa County Superior Court had been scheduled for Monday. U.S. District Judge Michael Liburdi issued the temporary restraining order (TRO for short) on Friday following a nearly two-hour hearing in Phoenix. He found that the CFTC had made “a clear showing that it is likely to succeed on the merits of its claim that Arizona’s gambling laws are preempted by the Commodity Exchange Act.” The Arizona Attorney General’s Office said it would inform the court on Monday that it will not proceed with the arraignment while the order stands. The TRO remains in effect through April 24. The ruling came two days after Liburdi denied Kalshi’s own motion for a preliminary injunction against Arizona. In that earlier decision, the judge said it was premature to rule on whether the federal Commodity Exchange Act overrides Arizona’s gambling laws – the central legal question in the case – citing the Anti-Injunction Act, which generally bars federal courts from blocking state criminal proceedings. The CFTC’s separate motion succeeded on different grounds, arguing that Arizona’s prosecution directly interfered with the agency’s exclusive federal authority over swaps traded on designated contract markets, triggering the Supremacy Clause. The CFTC’s separate motion, backed by the Department of Justice, succeeded by arguing that Arizona’s prosecution directly interfered with the agency’s exclusive federal authority over swaps traded on designated contract markets. Arizona Attorney General Kris Mayes filed 20…

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Filed under: News - @ April 13, 2026 4:29 pm