Kalshi argues the Commodity Exchange Act gives exclusive jurisdiction to the U.S. Commodity Futures Trading Commission to regulate the sort of prediction market exchange Kalshi operates. DES MOINES, Iowa (CN) — Prediction market platform Kalshi told a federal judge Friday Iowa should be permanently blocked from regulating the business under state gambling laws because the federal Commodity Futures Trading Commission (CFTC) has exclusive regulatory jurisdiction that preempts state action. “The answer is unquestionably yes,” Mainland said, pointing to the 1936 Commodity Exchange Act that gives exclusive jurisdiction to the U.S. Commodity Futures Trading Commission to regulate the sort of prediction market exchange Kalshi operates. Locher, a Joe Biden appointee, asked whether sports gambling operations might adopt the Kalshi model to escape state gambling regulators. Iowa argues what Kalshi offers is sports betting that amounts to the sort of gambling Iowa has long regulated.