Kalshi breathes a sigh of relief… U.S. court halts Connecticut's 'order to cease operations'

A U.S. court has put a hold on the State of Connecticut's order to halt business operations against prediction market platform Kalshi.

On the 10th (local time), Cointelegraph reported that the U.S. District Court in Connecticut said on the 8th, "It orders that (the State of Connecticut) refrain from taking enforcement action against Kalshi until a court decision is made." The court also ordered Connecticut to submit its answer to Kalshi's preliminary injunction by the 9th of next month. The first hearing on the legal dispute between Connecticut and Kalshi will take place on February 12 of next year.

Earlier, the Connecticut Department of Consumer Protection (DCP) issued orders earlier this month to halt operations for three platforms—Kalshi, Robinhood, and Crypto.com—on the grounds that prediction market platforms had not obtained licenses allowing them to offer betting contracts. Bryan Cafferelli, commissioner of the Connecticut Department of Consumer Protection, said, "(these platforms) even if they had obtained licenses, are violating various state laws and policies, such as providing betting services to those under 21."

In response, Kalshi immediately took legal action to temporarily suspend Connecticut's measures. Kalshi's position is that the contracts on its prediction market platform are legal under federal law. Cointelegraph reported, "Kalshi has become embroiled in lawsuits over whether gambling laws apply to Kalshi's services, with regulators in several U.S. states raising concerns."