Tag

Cftc

All articles tagged with #cftc

legal13 days ago

6th Circuit Rules Kalshi Sports Contracts Are Gambling, Not Federal Swaps

A unanimous 6th U.S. Circuit Court of Appeals panel ruled on Friday that Ohio and Tennessee may apply state gambling laws to Kalshi’s sports event contracts. The court rejected Kalshi’s argument that these contracts are federally regulated 'swaps' under the Commodity Futures Trading Commission (CFTC), stating that such instruments are designed for risk hedging, not sports betting. This decision vacates a preliminary injunction in Tennessee and upholds a lower court ruling in Ohio, deepening a split among federal circuits and increasing the likelihood of Supreme Court review.

via Mashable|

#6th-circuit #cftc #gambling-regulation

legal-and-business14 days ago•1 min saved

6th Circuit Rules States Can Regulate Kalshi Sports Contracts, Deepening Legal Split

The 6th U.S. Circuit Court of Appeals ruled on September 25 that Ohio and Tennessee may apply state gambling laws to Kalshi’s sports-related event contracts. The unanimous decision rejects Kalshi’s argument that such contracts are federally regulated 'swaps' under the Commodity Futures Trading Commission (CFTC). This ruling marks the second major appellate loss for prediction market platforms, following a similar 9th Circuit decision regarding Nevada. The conflicting rulings across circuits have intensified calls for Supreme Court intervention to resolve whether prediction markets are gambling or financial instruments.

via CNBC|

#cftc #gambling-regulation #kalshi

business-and-legal15 days ago•7 min saved

Kalshi Faces Existential Legal Threats as Tribal and State Courts Reject Financial Instrument Defense

Kalshi is facing a multi-front legal crisis after federal appeals courts ruled its sports contracts are gambling, not financial swaps. The Ninth Circuit blocked the platform on three California tribal reservations, while the Sixth Circuit affirmed state gambling laws in Ohio and Tennessee. These rulings contradict a Third Circuit decision favoring Kalshi in New Jersey, setting the stage for a Supreme Court showdown that could define the industry’s future.

via New York Post|

#business-and-legal #cftc #kalshi

legal-and-regulatory15 days ago•1 min saved

New York Files Suit to Block Polymarket, Citing Unlicensed Gambling

New York State has filed a lawsuit against prediction market platform Polymarket, alleging it operates as an unlicensed gambling entity. The state seeks to block the company from operating in New York, impose fines, and force restitution to users. Polymarket, which employs over 350 people in the state, has vowed to fight the legal action, arguing that its platform functions like a stock market rather than a gambling operation. This move follows similar legal challenges against competitors like Kalshi and highlights the ongoing conflict between state gambling regulators and federal authorities over the classification of event contracts.

via BNN Bloomberg|

#cftc #gambling-regulation #legal-and-regulatory

legal-and-business16 days ago•1 min saved

New York and Polymarket File Dueling Lawsuits Over Prediction Market Regulation

New York State sued Polymarket on Thursday, alleging it operates an illegal, unlicensed gambling platform in violation of state laws. Polymarket responded hours later by filing a countersuit in federal court, arguing that the Commodity Futures Trading Commission (CFTC) has exclusive authority to regulate prediction markets and that state enforcement is prohibited by federal law. The dispute centers on whether event contracts constitute gambling or federally regulated derivatives. New York seeks penalties including tripled gains and $100,000 per illegal wager offer, while Polymarket claims state actions create an 'impossible choice' between compliance and criminal liability. This legal clash follows similar suits against competitors like Kalshi and reflects a broader national conflict between state gambling regulators and federal authorities over prediction market oversight.

via CNBC|

#cftc #gambling-laws #legal-and-business

policy17 days ago•3 min saved

SEC and CFTC Accelerate Crypto Rulemaking After Clarity Act Senate Defeat

Following the Clarity Act's failure in the Senate, the SEC and CFTC are rapidly advancing their own regulatory frameworks. The SEC has proposed custody rules and tokenization exemptions, while the CFTC submitted a market structure proposal to the White House, aiming to provide clarity without congressional legislation.

via CNBC|

#cftc #clarity-act #crypto-regulation

policy20 days ago•7 min saved

Clarity Act Defeat Pushes Crypto Rules From Congress to Regulators

Senate votes 49-50 to block the Clarity Act, ending a year of bipartisan talks and shifting momentum from Congress to regulators as the path forward for crypto rules. The SEC tied a tokenized-stock exemption to the Act’s failure, while the CFTC issued no-action relief and moved broader rulemaking toward the White House, signaling a regulator-led roadmap despite Democrats insisting the bill isn’t dead and negotiations may resume.

via Decrypt|

#cftc #clarity-act #crypto-regulation

business22 days ago•1 min saved

CFTC advances crypto rules to White House review amid Congressional stalemate

The CFTC has filed its crypto asset rulemaking with the White House for review, signaling a continued federal push on crypto policy without congressional action; the same day the SEC unveiled an innovation exemption for tokenized stocks and the CFTC issued a no-action position for certain software developers under set conditions.

via The Block|

#business #cftc #crypto-regulation

business1 month ago•2 min saved

Kalshi Rolls Out Gold and Silver Perpetual Futures After CFTC Nod

Kalshi has won CFTC approval to list perpetual futures on gold and silver, expanding its offerings beyond prediction markets. The no-expiration contracts track metal prices via a funding mechanism and launched this week; Kalshi plans to add perps on copper, U.S. equities, and currencies in the future, asserting that a regulated platform provides a safer path to growth than unregulated rivals while traditional exchanges consider the potential disruption.

via CNBC|

#business #cftc #gold

law1 month ago•6 min saved

States Ask Supreme Court to Decide If Kalshi Bets Bypass State Sports-Gambling Rules

New Jersey asks the Supreme Court to settle whether sports bets on Kalshi’s federally registered prediction markets can be regulated by states; a circuit split (3rd Circuit vs 9th Circuit) over whether such bets are 'swaps' under Dodd-Frank and fall under CFTC jurisdiction could decide if state sports‑gambling laws apply.

via Ars Technica|

#cftc #dodd-frank #kalshi

business1 month ago•2 min saved

Supreme Court could settle whether prediction markets count as gambling

New Jersey has asked the Supreme Court to overturn a Third Circuit ruling that the CFTC has exclusive jurisdiction over Kalshi’s sports-related event contracts, while the Ninth Circuit recently ruled the opposite, creating a circuit split that could push the Court to decide whether prediction markets are gambling under state or federal law.

via NBC Sports|

#business #cftc #gambling-regulation

policy1 month ago•9 min saved

SCOTUS Faces a Bet: Federal vs. State Oversight of Prediction Markets

New Jersey has asked the Supreme Court to decide whether prediction markets should be regulated as federal derivatives (under the CFTC) or under state and tribal gambling laws, a clash that could redefine who regulates platforms like Kalshi and Polymarket U.S., reshape the future of sports betting, and affect state taxes and tribal sovereignty.

via Politico|

#cftc #kalshi #policy

law1 month ago•5 min saved

New Jersey presses Supreme Court to decide who regulates prediction markets

New Jersey has asked the Supreme Court to decide whether prediction-market platforms like Kalshi and Polymarket should be governed by state gambling laws or federal regulators, potentially overturning a lower court ruling that the CFTC has exclusive jurisdiction. The case highlights a broader fight over cross‑state regulation of these markets, with Kalshi arguing for federal oversight and New Jersey contending that Congress did not immunize the sports-betting regime from state law. The outcome could reshape how prediction markets are regulated nationwide as courts continue to weigh Nevada and other state rulings alongside the ongoing CFTC framework.

via Politico|

#cftc #kalshi #law

politics1 month ago•208 min saved

Supreme Court faces landmark test on prediction markets

New Jersey has asked the Supreme Court to decide whether prediction markets like Kalshi and Polymarket operate under federal oversight by the CFTC or can be blocked by state gaming laws, marking the first time the nationwide dispute has reached the high court. The Third Circuit upheld a district court’s block on New Jersey’s action against Kalshi, while Nevada’s Ninth Circuit created a circuit split by allowing state regulation of such markets as sports betting. Kalshi has faced shutdowns in several states, regulators are pushing federal rules, and the Trump administration has signaled support for a federally governed framework; if the Court agrees to hear the case, a decision could come by next summer with broad implications for regulatory authority and consumer protections.

via CNN|

#cftc #kalshi #new-jersey

business1 month ago•127 min saved

Santos banned by Kalshi over attendance bets and market manipulation claims

George Santos was barred from Kalshi’s prediction-market platform after Kalshi Compliance said he placed several large bets on whether he would attend events (including the State of the Union) and made public statements intended to sway contract prices, actions tied to an ongoing federal probe that led to a $35,000 CFTC settlement. The move mirrors broader scrutiny of Santos’ trading activity in prediction markets, with Kalshi also banning two other political hopefuls for similar conduct, while Santos publicly criticized the bans on social media.

via AP News|

#business #cftc #george-santos