Federal regulators, the Commodity Futures Trading Commission and the Justice Department, filed a lawsuit asking a federal court to prevent Arizona from applying its gambling statutes to prediction market operator Kalshi. They argue that contracts tied to sports, elections and other events are financial derivatives, or swaps, falling under the Commodity Exchange Act and thus under exclusive federal jurisdiction. A ruling could shift control of prediction markets from a patchwork of state gambling laws to a single nationwide federal framework. Read on coindesk.com