Federal judge pauses Tennessee enforcement action against Kalshi

A Tennessee federal judge has temporarily blocked state regulators from taking action against prediction markets platform Kalshi, the court said in an order on Monday. Judge Aleta Trauger granted Kalshi’s motion for a preliminary injunction and a temporary restraining order against the Tennessee Sports Wagering Council and the state attorney general, saying Kalshi “will suffer irreparable injury and loss” and that the company “is likely to succeed on the merits of its claims and its rights will likely be violated” unless the regulator is restrained.

The council had sent cease-and-desist letters to Kalshi, Polymarket and Crypto.com, accusing them of offering sports wagering products without a license and ordering them to stop, void contracts and refund users in Tennessee by Jan. 31 while threatening fines of up to $25,000 per offense.

Kalshi sued the Sports Wagering Council, its chair William Orgen, its executive director Mary Beth Thomas, and state attorney general Jonathan Skrmetti, arguing that as a federally designated derivatives exchange it falls under the Commodity Futures Trading Commission’s exclusive jurisdiction.

Key Topics

Crypto, Kalshi, Tennessee, Cftc, Sports Wagering Council, Aleta Trauger