US appeals court rules states can regulate Kalshi's sports prediction markets
- —The 6th Circuit unanimously rejected Kalshi's argument that its contracts are swaps under CFTC jurisdiction
- —The ruling overturns a Tennessee district court decision favoring Kalshi and upholds an Ohio court's stance
- —Last month the 9th Circuit also held that Nevada can regulate sports-related event contracts
- —The CFTC has sued nine states to defend what it calls its exclusive authority over event contracts
Why it matters: Sets a precedent for states to regulate sports prediction market contracts, potentially limiting the platforms' US expansion.
Source: CNBC Crypto