Washington Bans Kalshi from Offering Contracts on Sports, Elections, and Technology
The Washington State Supreme Court has prohibited the crypto-based event betting platform Kalshi from offering a wide range of event contracts to state residents, including those related to sports, elections, politics, entertainment, culture, technology, and science. Judge John McHale rejected Kalshi's argument that federal commodity market law preempts state gambling regulations.
The ruling allows contracts tied to commodities, climate, economics, and financial metrics to continue but mandates Kalshi to implement geofencing measures by specific deadlines to block Washington users from accessing banned contracts. State Attorney General Nick Brown stated the action holds Kalshi accountable for operating illegal gambling.
Kalshi contends that the Commodity Futures Trading Commission (CFTC) has exclusive jurisdiction over its business. The court found the state presented sufficient grounds for its case under three state laws and that federal law does not override Washington's gambling statute. This decision reinforces a distinction: financial/commodity-based contracts remain permissible, while those on political, sports, or cultural events fall under state gambling law.
The outcome depends on Kalshi's pending appeal and similar legal battles in other states, highlighting the ongoing conflict between federal derivatives regulation and state-level gambling enforcement.
cryptonews.ru2 giorni fa 07:10