A U.S. federal judge has temporarily halted Tennessee's enforcement of an injunction against Kalshi, a prediction market operator. This decision allows Kalshi to continue its operations in the state while legal proceedings are ongoing. Kalshi contends that as a designated contract market regulated by the U.S. Commodity Futures Trading Commission (CFTC), it is protected by federal law from state gambling regulations. Tennessee had previously ordered Kalshi, along with Polymarket and Crypto.com, to cease offering sports event contracts to its residents, threatening fines of up to $25,000 per violation. A preliminary injunction hearing is set for January 26 to further address the issue.