A Tennessee federal judge has halted state regulators from taking action against prediction markets platform Kalshi. The judge supported Kalshi’s motion for a preliminary injunction and temporary restraining order against the Tennessee Sports Wagering Council and the state’s attorney general. The regulator ordered Kalshi, Polymarket, and Crypto.com to stop offering sports event contracts in the state.

The regulator accused all three platforms of offering sports wagering products without a license, demanding them to cease operations, void contracts, and refund users by Jan. 31. Kalshi sued the Sports Wagering Council and state officials, arguing that as a federally designated derivatives exchange, it falls under the Commodity Futures Trading Commission’s exclusive jurisdiction.

Kalshi has filed similar lawsuits against other state regulators who issued cease-and-desist letters to the company. Courts in Nevada and New Jersey have supported Kalshi, blocking state regulators from taking action while the lawsuits play out. However, a judge in Maryland denied Kalshi’s request for a temporary block. Tennessee’s action against Kalshi is on hold until a preliminary injunction hearing on Jan. 26.

Cointelegraph remains committed to independent and transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy to provide accurate and timely information. Readers are advised to verify information independently.

Read more at Cointelegraph: Court Blocks Tennessee From Taking Action on Kalshi