A Tennessee court has temporarily blocked the state's action against prediction market Kalshi.

PANews reported on January 13th that, according to Cointelegraph, a federal judge in Tennessee has temporarily blocked the state's regulators from taking action against prediction market platform Kalshi. This comes after Kalshi sued the state, seeking an order to cease offering contracts for sporting events. On Monday, Judge Aleta Trauger issued an order granting Kalshi's applications for a preliminary injunction and temporary restraining order against the Tennessee Sports Betting Commission and the state's Attorney General. The order is in effect while the case is being heard.

The judge stated that the regulator's actions would cause Kalshi "irreparable harm and loss," and that unless the regulator is restrained, the company "is likely to win on the substantive issues of its claims, and its rights are likely to be violated." The Tennessee Sports Betting Commission issued stop-loss orders to Kalshi, Polymarket, and Crypto.com on Friday, ordering them to cease offering sports betting contracts in the state. The regulator accused the three companies of offering sports betting products without a license. The regulator ordered them to stop offering such products in Tennessee, cancel all contracts, and refund all users in the state by January 31, or face fines of up to $25,000 for each violation.