Kalshi filed suit in federal court in Illinois to stop enforcement of budget bill SB3019 before its intended July 1 effective date, arguing the law’s licensing requirement for prediction market platforms and 0.2% tax on digital asset transactions involving Illinois customers are preempted by the Commodity Exchange Act. The CFTC-registered platform says federal law gives the agency exclusive jurisdiction over exchange-traded derivatives and that complying with the Illinois measure would force it into an impossible choice between violating federal uniformity requirements or state law. Separately, former U.S. Solicitor General Elizabeth Prelogar, representing PredictAction, filed an amicus brief in the Sixth Circuit supporting Kalshi against state gambling-based restrictions, arguing prediction markets aggregate information through prices and differ from sports betting operators that profit by setting odds.