Svmuu News: A U.S. federal judge has temporarily halted Tennessee’s attempt to force prediction market operator Kalshi to shut down its sports betting operations in the state, freezing a cease-and-desist order. The court will consider whether the company’s platform, which is regulated by the U.S. Commodity Futures Trading Commission (CFTC), should be exempt from state gambling laws. According to an order signed on Monday, the ruling suspends enforcement actions by the Tennessee Sports Betting Commission and the state attorney general. Previously, regulators had ordered Kalshi, Polymarket, and Crypto.com to cease offering sports-related contracts to Tennessee residents and to liquidate open contracts and refund customer deposits by January 31. Tennessee officials had initially warned that noncompliance could result in fines of up to $25,000 per violation and potential referral to law enforcement. Kalshi countered that the dispute involves a conflict of jurisdiction between state gambling enforcement and federal commodities laws. In its federal petition, the company stated that Tennessee’s actions infringed upon the CFTC’s “exclusive jurisdiction” over derivatives trading on designated exchanges, and argued that the enforcement actions threatened by the state were superseded by the Commodity Exchange Act. (The Block)