In a dramatic twist worthy of a daytime soap opera, prediction market Kalshi has decided to take the legal plunge, filing a lawsuit against the infamous Nevada Gaming Control Board and the New Jersey Division of Gaming Enforcement. Why, you ask? Because these state regulators graciously sent them cease and desist orders, which I can only assume were scented with the distinct aroma of government bureaucracy.
Kalshi’s legal team, donned in their finest “we’re definitely not afraid of state-level authority” attire, argues that their contracts are the crown jewels of the Commodities Futures Trading Commission (CFTC). Apparently, according to them, this makes Kalshi immune to the pesky regulations of state authorities—like trying to get out of a speeding ticket by claiming you’re driving a hovercraft.
As if that weren’t enough drama for one day, Kalshi further contends that these cease and desist orders completely miss the mark—comparable to a referee during a game of charades. Their event contracts, they claim, are two-sided markets that operate more like swaps than your average sports-betting model, where the house gets to hold all the aces. Seemingly unfazed, Kalshi co-founder Tarek Mansour boldly declared:
“Prediction markets are a critical innovation of the 21st century, and like all innovations, they are initially misunderstood. We are proud to be the company that has pioneered this technology and stand ready to defend it once again in a court of law.”
To add another layer to this legal lasagna, the Nevada Gaming Control Board—oh, those persistent regulators—dropped a cease and desist order for Kalshi’s election contracts too. Just last September, a U.S. judge ruled these contracts perfectly legal, allowing them the privilege of trading freely across this great land. So perhaps the regulators are just a bit confused, like a cat trying to figure out a laser pointer.
CFTC Chooses a New Path: Bye-Bye to “Regulate By Enforcement”
On the 4th of February, acting CFTC director Caroline Pham decided to grace us with new regulations that somehow manage to pivot away from the enforcement we’ve all grown to know and… well, growl at. Instead, she announced that the CFTC would huddle over the campfire and focus on fraud instead. Because nothing says “reassurance” like shifting the threat from one potentially disastrous outcome to another.
According to Pham, “The CFTC is strengthening its enforcement program to focus on victims of fraud, as well as remaining vigilant for other violations of law.” It’s like saying, “We’ll stop looking at the mess on the floor if you promise to keep sweeping up the crumbs”—an intriguing philosophy indeed.
Meanwhile, the CFTC is making headlines by initiating a probe into Super Bowl event contracts that Kalshi and Crypto.Com daringly offered. Rumor has it, they wanted to ensure these spectacle-ridden contracts were compliant with existing derivatives laws in the U.S. The good news? In a plot twist, the CFTC took no action to ban the contracts. I guess they’re just finding their footing in this ongoing game of regulatory musical chairs.
Read More
- Elder Scrolls Oblivion: Best Battlemage Build
- 30 Best Couple/Wife Swap Movies You Need to See
- Summoners War Tier List – The Best Monsters to Recruit in 2025
- ATH PREDICTION. ATH cryptocurrency
- ALEO PREDICTION. ALEO cryptocurrency
- To Be Hero X: Everything You Need To Know About The Upcoming Anime
- Snowbreak: Containment Zone Katya – Frostcap Guide
- Are Lady Gaga’s Ever-Changing Wedding Plans Suiting Fiancé Dizzy? Here’s What’s Happening
- DC: Dark Legion The Bleed & Hypertime Tracker Schedule
- When Johnny Depp Revealed Reason Behind Daughter Lily-Rose Depp Skipping His Wedding With Amber Heard
2025-03-29 19:13