A federal judge in Tennessee has granted a preliminary injunction motion against prediction market platform Kalshi, prohibiting state officials from enforcing state betting laws on its sports betting contracts. The judge ruled that Kalshi's sports betting contracts are highly likely to be deemed swaps under federal commodity law, potentially giving federal law precedence over state regulations. Previously, Tennessee regulators had issued a cease and desist letter to Kalshi, threatening that its operation without a state license violated the Tennessee Sports Betting Act. Attorney Andrew Kim commented on the X platform that this ruling differs from the Nevada ruling. Earlier this week, the CFTC filed an amicus brief in a case involving Crypto.com and Nevada, arguing that it has "exclusive jurisdiction" over prediction markets and event contracts as commodity derivatives. (The Block)