Kalshi, a prediction market platform, is currently blocked for customers in Washington, Michigan, and Nevada, with Washington state authorities accusing the company of operating an illegal gambling business. Kalshi is challenging these bans in court, citing inconsistent enforcement by states that allow competitors like Crypto.com to operate under similar terms.

Meanwhile, the Commodity Futures Trading Commission (CFTC) is actively defending prediction markets, with Chairman Mike Selig prioritizing the development of a comprehensive regulatory framework and consumer protection rules for the industry. At a recent CFTC meeting, Selig and Kalshi COO Luana Lopes Lara clashed with CME Group CEO Terry Duffy, who raised concerns about potential manipulation in prediction markets.