Overview
- Kalshi filed a federal suit on Feb. 23 against Utah Gov. Spencer Cox and Attorney General Derek Brown, seeking declaratory and injunctive relief to prevent state enforcement that it says would be preempted by federal law.
- The CFTC filed an amicus brief in the Ninth Circuit in Crypto.com/NADEX v. Nevada, asserting that exchange‑listed event contracts are federally regulated derivatives under the Commodity Exchange Act.
- Utah’s governor publicly vowed to keep prediction markets out of the state, calling them gambling, while lawmakers advance a bill to classify proposition bets as illegal under state law.
- Kalshi announced bans and fines for two users accused of insider trading, including candidate Kyle Langford, and said both cases were referred to the CFTC after internal surveillance flagged the activity.
- Conflicting court rulings and active appeals have created regulatory uncertainty that legal analysts say could reach the U.S. Supreme Court as platforms, states, and the CFTC press their cases.