According to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) and the Department of Justice filed documents on Tuesday evening requesting a federal court to block Arizona's enforcement action against the prediction market platform Kalshi under state gambling laws. They argue that contracts related to sports, elections, and other events fall under "swaps" under the Commodity Exchange Act and should be regulated at the federal level rather than by state gaming authorities. However, states like Arizona insist that sports outcome contracts are no different from traditional gambling and should be subject to licensing, age restrictions, and consumer protection rules. Arizona has gone further and has filed criminal charges against Kalshi under state gaming laws, with a hearing scheduled for April 13. The CFTC emphasizes its "exclusive jurisdiction" over designated contract markets (DCMs) and warns that allowing states to enforce against federally regulated trading platforms could lead to regulatory fragmentation and disrupt the nationwide market framework.