Kalshi Regulatory Dispute Escalates, May Ultimately Reach U.S. Supreme Court

Odaily reported that the U.S. Court of Appeals for the Ninth Circuit has held oral arguments in the dispute between Kalshi and the state of Nevada over regulatory authority for prediction markets. The legal community anticipates that this case may ultimately be submitted to the U.S. Supreme Court for a ruling.

The core of the dispute lies in whether the event contracts offered by Kalshi constitute "swap" products that should be regulated by the U.S. Commodity Futures Trading Commission (CFTC). The state of Nevada argues that Kalshi must obtain a gambling license to operate, while Kalshi contends that state-level gambling regulations should not apply. Previously, a federal court in Arizona has blocked the state from taking action against Kalshi under gambling laws. (Cointelegraph)