Summary
- Kalshi won its appeal against New Jersey, with the court ruling that regulatory authority over prediction-market platform Kalshi lies with the CFTC.
- The US Court of Appeals in Philadelphia said New Jersey has no authority to regulate Kalshi under state gambling laws and that the relevant regulatory authority lies with the CFTC.
- With state-by-state judgments split over regulatory authority for prediction markets, the ruling could ultimately be subject to a final determination by the US Supreme Court.
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Prediction-market platform Kalshi won an appeal against the state of New Jersey. The court found that regulatory authority over the service rests with the Commodity Futures Trading Commission (CFTC).
According to Decrypt, a media outlet specializing in virtual assets (cryptocurrencies), the US Court of Appeals in Philadelphia ruled on the 6th (local time) that New Jersey has no authority to regulate Kalshi on the basis of state gambling laws. Instead, it said the relevant regulatory authority lies with the CFTC.
Previously, New Jersey’s gambling regulator had deemed Kalshi’s sports-related betting service to be unregistered betting and ordered it to suspend operations. Kalshi filed an appeal in response.
As this is an appellate court ruling, a final determination may ultimately be made by the US Supreme Court. At present, state-by-state judgments over who has regulatory authority for prediction markets are divided.
Mike Selig, a CFTC commissioner, said, “This ruling reaffirms Congress’s intent to vest regulatory jurisdiction in the CFTC,” adding, “We welcome the court’s decision that has nullified New Jersey authorities’ attempt.”
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
