Svmuu The U.S. Ninth Circuit Court of Appeals has held oral arguments on 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 needs to 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 based on gambling laws. (Cointelegraph)