Sixth Circuit Rules Kalshi Sports Contracts Fall Under State Regulation
A Sixth Circuit appeals panel ruled that sports-related prediction market contracts are not swaps and therefore do not fall under federal regulatory oversight.
Kalshi faced another adverse appeals court ruling after a Sixth Circuit panel found that sports-related event contracts offered by prediction markets are subject to state regulation.
The panel concluded that these contracts do not qualify as swaps, according to CoinDesk. On that basis, it ruled that they fall outside federal regulatory oversight.
The decision addresses the regulatory treatment of sports-related contracts, rather than prediction market offerings as a whole. It marks a further setback for Kalshi in the dispute over state authority.
Source: CoinDesk
