Crypto Prediction Markets Continue To Be Under Siege — Are Traders Now Fair Game For Prosecutors?
U.S. federal regulators, including the CFTC and DOJ, are seeking a court order to prevent Arizona from enforcing its gambling laws against crypto prediction-market platform Kalshi. They argue that contracts tied to sports, elections, and real-world events qualify as financial derivatives ("swaps") under federal law, not state-regulated gambling. This legal action is part of a broader conflict between federal and state authorities over jurisdiction on prediction markets. Arizona and other states contend these platforms constitute illegal gambling and have initiated criminal charges. Similar legal pressures are affecting Kalshi’s rival, Polymarket, which faces lawsuits and investigations in multiple states. The outcome could either legitimize and boost U.S. prediction markets or fragment them into riskier offshore operations.
bitcoinist04/09 18:02
