News linked to both this project and an event.
According to court documents, the New York State Gaming Commission has filed a petition with the New York County branch of the New York State Supreme Court, asking the court to compel Kalshi to comply with an investigative subpoena issued on July 31 under Section 104(7) of the state's Racing Law. The subpoena concerns sports event contracts, business directed at users under 21, advertising that describes products as betting, and equity and corporate structure. The Commission said the move is intended to determine whether to impose civil penalties on Kalshi and other parties and the amount of such penalties; Kalshi has not yet publicly responded. Previously, the New York Attorney General and the Governor sued Kalshi on July 31, seeking at least $36 billion. Federal Judge Torres rejected Kalshi's request for a preliminary injunction on July 7; appellate courts are divided, with the Third Circuit supporting Kalshi and the Ninth and Sixth Circuits supporting state regulation.
According to an official press release, the Blockchain Association (BA), Crypto Innovation Council (CCI), Digital Chamber of Commerce (TDC), and Illinois Blockchain Association (IBA), jointly with the State of Illinois, filed a joint motion on October 13 with the Sangamon County Circuit Court to expedite proceedings on two challenges to the Digital Assets Tax Act. The state government has agreed to suspend enforcement of the act until July 1, 2027. The parties propose accelerating the summary judgment process, with a motion filing deadline of November 4, 2026, briefs due by January 22, 2027, hearings scheduled from February 8 to 19, 2027, and a final ruling expected by March 1, 2027. These organizations contend that the tax law’s disparate treatment of digital assets violates federal and Illinois state law, would cause unfair harm to the industry, and sets a harmful precedent.
Odaily News: Prediction market platform Kalshi filed a petition for en banc rehearing with the U.S. Court of Appeals for the Sixth Circuit on the 13th, requesting that the full court reconsider the three-judge panel's rulings in "Kalshi v. Schuler (Ohio)" and "Kalshi v. Orgel (Tennessee)." In late September, the three-judge panel ruled against granting Kalshi a preliminary injunction against the Ohio gaming regulatory and enforcement agency, while also vacating a previously issued preliminary injunction against the relevant Tennessee agency. In its petition, Kalshi argued that the three-judge panel misinterpreted the Commodity Exchange Act in two ways, including whether federal securities law preempts state gaming law and whether sports event contracts constitute "swaps." Kalshi stated it is still waiting for the right timing to file a petition with the Supreme Court.
Bitcoin News posted on X platform stating that education company Genius Group purchased 10 bitcoins worth $854,000, marking the company's first repurchase since selling its entire bitcoin reserve on April 1 to repay $8.5 million in debt. As of February 2025, Genius Group had accumulated 440 bitcoins, after which it was affected by a New York injunction for approximately one year due to a dispute with LZG International. The U.S. Court of Appeals for the Second Circuit lifted the freeze order on August 31, and CEO Roger James Hamilton views this purchase as a signal that the company is restarting its bitcoin accumulation.
Molly Abraham (@mollyisonchain), a member of Coinbase’s legal team, posted that Coinbase filed an appellate brief today with the U.S. Court of Appeals for the Second Circuit, requesting the court to confirm the Commodity Futures Trading Commission’s (CFTC) exclusive regulatory authority over prediction markets. Molly emphasized that the crux of the dispute is not whether prediction markets should be regulated—they are already governed by the Commodity Exchange Act—but rather whether they should be uniformly overseen by the CFTC, which brings more than 50 years of experience managing derivatives markets, or subjected to disparate regulation across all 50 states. According to Coinbase, Congress has already answered this question clearly, and this filing seeks judicial confirmation of that ruling.
Odaily News: Prediction market platform Kalshi has won a partial preliminary injunction against the state of Illinois. On October 2, Judge Martha M. Pacold of the U.S. District Court for the Northern District of Illinois ruled that the state's sports betting licensing regime and related criminal provisions may be preempted by federal law and cannot currently be enforced against Kalshi.The ruling temporarily blocks Illinois from requiring Kalshi to hold a state license, which was originally intended to restrict traders to those aged 21 or older and physically located within the state, as well as to limit the sporting events that contracts could track. The court also declined to rule on Illinois's newly established prediction market fees.Pacold stated that contracts on championship winners may constitute swaps under the Commodity Exchange Act and should be traded on designated contract markets and subject to federal regulation. This determination differs from the Ninth Circuit Court of Appeals' August conclusion that such contracts constitute gambling rather than swaps.This is Kalshi's first victory in federal court since July. Illinois's new budget law imposes a 1.75% fee on the first 5 million relevant transactions on exchanges, then 3.5% thereafter, plus a 15% gross revenue fee and a per-transaction fee of 25 or 50 cents; the court has asked the parties to submit supplemental briefs on the fee issue. (Bitcoin.com News)
According to CoinDesk, the U.S. Commodity Futures Trading Commission (CFTC) has submitted two proposed rules to the White House Office of Management and Budget (OMB): one would formally classify event contracts traded on platforms such as Kalshi, Polymarket, Crypto.com, and Robinhood under the regulatory definition of "swaps"; the other would explicitly exclude casino-style gambling products from the swaps category. This move aims to respond to recent federal court rulings—the Sixth and Eighth Circuits both ruled that Kalshi's sports-related contracts do not qualify as swaps and should be subject to state gambling regulations, while the Third Circuit upheld the CFTC's jurisdiction over prediction markets. With conflicting rulings across the circuits, the matter may ultimately need to be resolved by the U.S. Supreme Court. Currently, the CFTC comprises only one commissioner, Chair Mike Selig, with all related decisions made solely by him.
Odaily News: Prediction market operator Kalshi is in negotiations for a $1 billion funding round at a target valuation of $40 billion. Existing investors Sequoia Capital and Wellington Management are in discussions to lead the round, with Tiger Global and Dragoneer Investment Group also participating in talks.The funding round has not yet been finalized, and the final list of investors and closing date have not been disclosed. Kalshi raised $300 million at a $5 billion valuation in October 2025, and completed a $1 billion funding round at a $22 billion valuation in May 2026.The U.S. Sixth Circuit Court of Appeals ruled against Kalshi on September 25 in lawsuits involving Ohio and Tennessee, allowing the two states to regulate its sports contracts under gambling laws. Kalshi argues that its products are regulated by the U.S. Commodity Futures Trading Commission. (Bitcoin.com News)
Kalshi lost its appeal as the Sixth Circuit Court ruled that states may regulate sports betting contracts, a decision that diverges from its prior partial victories and could pave the way for the case to reach the Supreme Court.
The U.S. Court of Appeals for the Sixth Circuit recently ruled that sports-related contracts on the Kalshi platform fall under state-level gambling regulation rather than federal financial derivatives. This ruling deepens the split within the national judicial system over regulatory authority for prediction markets, and the case is expected to be appealed to the Supreme Court.
Odaily News: A panel of judges on the US Sixth Circuit Court of Appeals has ruled that prediction market platform Kalshi's sports event contracts do not constitute swaps, and are therefore subject to state-level gambling regulation rather than US Commodity Futures Trading Commission (CFTC) rules.The ruling involves two lawsuits filed by Kalshi against regulatory authorities in Ohio and Tennessee. Kalshi sought injunctions to block the two states from pursuing legal action against it, but the Ohio federal court denied its request, while the Tennessee federal court granted it. (CoinDesk)
Odaily reports: The National Council of Legislators from Gaming States (NCLGS) has filed an amicus brief with the U.S. Supreme Court in support of the New Jersey Attorney General and gambling regulators' petition to hear their case against prediction market platform Kalshi. The petition seeks to clarify whether state governments or federal agencies have jurisdiction over prediction market companies.NCLGS stated that if the ruling favors Kalshi, states would be unable to regulate sports betting within prediction markets, potentially leading to regulatory confusion. The council believes that gambling-related matters should be handled by state regulators, and noted that casinos and other regulated entities may adjust their operations and products accordingly.New Jersey authorities filed a petition for a writ of certiorari on September 2, stemming from their appeal of a Third Circuit Court of Appeals ruling. Kalshi has not yet formally responded and must submit its position brief by November 9; the company has previously stated that it cannot be regulated separately by 50 different regulators. (Cointelegraph)
Odaily News: According to crypto reporter Eleanor Terrett, eight banking trade groups have stated that the deposit outflow "circuit breaker" mechanism added to the new version of the CLARITY Act is not an effective safeguard, because the mechanism would only be triggered after large-scale deposit outflows have already occurred.In a letter to Senate leaders, these groups called for further tightening of provisions related to stablecoin rewards, in order to close loopholes that could allow stablecoin balances to earn interest-like payments.
Odaily News – The Blockchain Association and the Innovative Crypto Council (CCI) have filed a motion for a preliminary injunction with the Circuit Court of Sangamon County, Illinois, seeking to halt the 0.2% digital asset franchise transaction tax scheduled to take effect on January 1, 2027, during the pendency of litigation. The tax applies to crypto entities established in Illinois or providing services to Illinois residents with annual gross revenues exceeding $100,000. The two lobbying groups had previously sued Illinois over the measure and, together with the Chamber of Digital Commerce, argue that the law violates the federal Internet Tax Freedom Act as well as the Due Process and Interstate Commerce clauses of the U.S. Constitution.
Odaily News According to Odaily, Prediction market platform Kalshi has not yet filed its response with the U.S. Supreme Court, with a 30-day deadline for its response to New Jersey's September 2 filing. New Jersey is asking the court to determine whether states can regulate sports betting offered on exchanges registered with the Commodity Futures Trading Commission (CFTC), as the Third Circuit Court of Appeals and the Ninth Circuit Court of Appeals are split on the issue.Kalshi CEO Tarek Mansour stated that the CFTC will issue new rules within the coming weeks or months to further clarify Rule 40.11. Kalshi's litigation lead Jovy Dedaj and spokesperson Dani Lever also noted that the Ninth Circuit's ruling was primarily based on regulatory provisions currently being rewritten.In June, the CFTC proposed replacing its blanket prohibition on betting contracts with case-by-case public interest reviews, under which sporting events would be classified as gambling, though most game outcomes and special wager contracts could still be permitted. After Kalshi submits its response, New Jersey will have 10 days to reply, and the Supreme Court typically schedules a conference to consider the case about a month thereafter. (Bitcoin.com News)
According to Decrypt, Ingham County Circuit Court Judge Rosemarie Aquilina has issued a preliminary injunction against prediction market platform Kalshi, ordering it to stop offering sports betting-related contracts to Michigan residents. The court determined that Kalshi's relevant operations are essentially "sports betting disguised as investment opportunities."
Odaily News: New Jersey Attorney General Jennifer Davenport and acting director of the state's Division of Gaming Enforcement, Mary Jo Flaherty, have filed a petition for a writ of certiorari with the U.S. Supreme Court, requesting review of the state's enforcement action against prediction market platform Kalshi over its sports event contracts.The petition cites civil cases brought by at least 20 state gaming regulators and asks the Supreme Court to rule on whether prediction market companies may still violate state laws while complying with regulations set by the U.S. Commodity Futures Trading Commission (CFTC). The petition also addresses whether the Dodd-Frank Act precludes state regulatory authority over sports betting within their jurisdictions.The filing challenges a 2-1 ruling issued by the U.S. Court of Appeals for the Third Circuit in April. Kalshi spokesperson Dani Lever stated that the company disagrees with New Jersey's appeal to the Supreme Court, adding that Kalshi cannot operate under separate oversight from 50 regulators, and that the company remains confident in the lower court's ruling. (Cointelegraph)
Odaily News - The U.S. Court of Appeals for the Ninth Circuit ruled 3-0 on August 28 that sports event contracts offered by Kalshi are not swaps, and that the Commodity Exchange Act does not preclude Nevada from applying gambling regulations to the relevant contracts. The court also vacated a prior injunction that allowed Kalshi to continue offering the contracts, and denied injunction requests from Crypto.com and Robinhood.The U.S. Court of Appeals for the Third Circuit ruled in April of this year that Kalshi's related contracts were likely swaps and protected by federal law from state regulation. The two federal appellate courts are now split on the issue, and New Jersey has a September 3 deadline to petition the U.S. Supreme Court for review.Kalshi said it will seek further review and believes current U.S. Commodity Futures Trading Commission (CFTC) rules do not prohibit sports event contracts. Robinhood said it plans to appeal; the CFTC, meanwhile, noted that derivatives structured as swaps qualify as swaps, and except for onions and movie box office revenue, the law provides no related exemptions. (Bitcoin.com News)
Odaily News: Digital asset advocacy groups Crypto Council for Innovation (CCI) and the Blockchain Association (BA) have filed a lawsuit against Illinois officials, opposing the state's 0.2% cryptocurrency tax. The tax, expected to take effect in January 2027, is levied on transaction volume rather than income.The two organizations filed the complaint in the Seventh Judicial Circuit Court of Sangamon County, arguing that the tax violates the U.S. Constitution, the Illinois Constitution, federal and state due process laws, and the Internet Tax Freedom Act, and could result in double taxation. The complaint also states that the tax rules are overly vague, placing compliance burdens on residents and brokers while exposing them to civil and criminal penalties.Blockchain Association CEO Summer Mersinger stated that Illinois cannot implement a tax system that discriminates against digital commerce and increases uncertainty for consumers and businesses. The Digital Chamber filed a similar lawsuit in July over the same tax, claiming it discriminates against digital asset traders. (Cointelegraph)
Odaily News: In a podcast interview, Tom Lee stated that if he could hold only one company over the next 10 years, he would choose Robinhood Markets over prediction market platform Kalshi. He believes Robinhood possesses a competitive moat built on user experience (UI) and customer relationships, an advantage that is sometimes underestimated by investors. He noted that Robinhood has established genuine user connections, which will serve as a critical foundation for the company's long-term growth.When discussing the regulatory risks facing prediction markets, Tom Lee expressed that this sector involves local regulators and judicial rulings, and significant uncertainty remains ahead. Currently, multiple U.S. states, including New York and Nevada, have taken legal action against prediction market-related businesses, while the U.S. Ninth Circuit Court of Appeals is also expected to issue a related ruling later this year.Regarding the regulatory framework for prediction markets, Tom Lee believes it might be more reasonable for the U.S. Commodity Futures Trading Commission (CFTC) to obtain regulatory authority. He stated that adjustments to prediction market regulations are part of the broader restructuring of the financial services regulatory system, but the final outcome of court rulings remains difficult to predict.Tom Lee has long been bullish on the fintech and digital asset sectors, and he believes the financial services industry will undergo broader regulatory and business model transformations in the future.