Overview
- The federal regulator filed in the Southern District of New York seeking a court order that bars the state from applying gambling laws to exchanges it registers.
- The CFTC argues that event contracts on registered venues are swaps under the Commodity Exchange Act, which it says gives the agency exclusive oversight.
- New York has sued Coinbase and Gemini over prediction products and has targeted parts of Kalshi’s sports markets under state gambling statutes.
- Thirty-seven states and Washington, D.C. urged a Massachusetts court to reject Kalshi’s claim that federal law lets it offer sports contracts nationwide without state approval.
- Other states have stepped up enforcement, including a Nevada court order that extended a ban on some Kalshi contracts, raising stakes for where people can legally trade and what age and fraud checks apply.