News linked to both this project and an event.
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.
According to The Block, the Blockchain Association filed an amicus curiae brief on August 13 supporting Custodia Bank's appeal to the U.S. Supreme Court, requesting a review of the legality of the Federal Reserve Bank's refusal of its master account application. The Blockchain Association pointed out that this case concerns whether legitimate digital asset enterprises can compete in a fair environment, and warned that the lower court ruling provides a precedent for federal regulators "to debank unpopular industries in the future without the intervention of state regulators." Custodia Bank was founded by Wall Street veteran Caitlin Long, applied for a Fed master account in October 2020, was rejected by the Federal Reserve Bank of Kansas City in January 2023 on the grounds that the crypto business model posed risks, subsequently lost twice in the district court and the Tenth Circuit Court of Appeals, and was denied rehearing by the full court in a 7 to 3 vote in March 2026. The Federal Reserve Bank of Kansas City must respond to the Supreme Court application by September 11.
: U.S. Federal District Judge Robert J. Shelby ruled that the Commodity Exchange Act does not prevent Utah from applying its anti-gambling laws to Kalshi's sports event contracts, granting Utah's motion for summary judgment and denying Kalshi's motion for a preliminary injunction. Shelby stated that the jurisdictional provisions of the Commodity Exchange Act are subject to multiple reasonable interpretations, and in such cases, courts generally do not support federal law preemption. He also rejected Kalshi's argument that amendments under the Dodd-Frank Act established federal preemption for derivatives trading. Kalshi spokesperson Jacki McGavick said the company disagrees with the ruling and will appeal to the Tenth Circuit Court of Appeals. Currently, Utah users can still use sports event contracts, and the state has not yet initiated enforcement action. The New York Attorney General has already cited the ruling as supplementary grounds in opposing the CFTC's motion for a preliminary injunction against New York state. Earlier, New York sued Kalshi last week, alleging that it operates as an unlicensed gambling operator.
The U.S. Court of Appeals for the Ninth Circuit overturned the prior injunction, allowing Perplexity's AI shopping agent to return to the Amazon platform. The court ruled that users bear legal liability for accessing Amazon through the Perplexity agent, rather than Perplexity itself, thus making it difficult to sustain claims of violating the Computer Fraud and Abuse Act.
According to BeInCrypto, the U.S. Court of Appeals for the Second Circuit officially issued the mandate in the SBF case on August 4, marking the formal conclusion of Sam Bankman-Fried's appellate proceedings. The one-page order affirmed the original verdict without providing any new reasoning, leaving his 25-year prison sentence and approximately $11 billion forfeiture order unchanged. Previously, on June 12, the panel rejected SBF's appeals on all seven counts. In the opinion, Judge Parker noted that while SBF publicly assured customers, investors, and regulators of the safety of FTX funds, he misappropriated customer funds for real estate, political donations, and personal investments. Currently, SBF's only remaining judicial recourse is to petition for a writ of certiorari from the U.S. Supreme Court within 90 days, but the Supreme Court's acceptance rate is extremely low. Additionally, SBF has separately submitted a clemency application to the Department of Justice, but Senators Cynthia Lummis and Ruben Gallego have jointly introduced a resolution opposing the granting of clemency to him.
A Kalshi public relations representative stated that U.S. states do not have the jurisdictional authority to regulate prediction markets, a legal boundary that has been clarified through relevant case law by multiple courts, including the U.S. Court of Appeals for the Third Circuit.Kalshi expressed disappointment over Washington State's continued allocation of public financial resources to advance related regulatory actions, asserting that the authority to regulate prediction markets should rest at the federal level.
The U.S. Commodity Futures Trading Commission (CFTC) on Tuesday suspended an emergency rule by Kalshi, preventing it from forcibly liquidating open sports event contracts held by certain Michigan residents, and requiring Kalshi to follow normal procedures to fulfill related transactions. Kalshi submitted the emergency rule on July 12, after the Ingham County Circuit Court in Michigan orally requested it to close some positions. A letter dated July 6 stated that the related transactions must be voided, canceled, and refunded. The dispute began in March, when Michigan Attorney General Dana Nessel and the Michigan Gaming Control Board sued Kalshi, alleging that its sports event contracts constituted unlicensed internet sports betting. Kalshi argues that the relevant products are federally regulated derivatives under the Commodity Exchange Act. The CFTC stated that allowing Kalshi's emergency rule to take effect could undermine confidence that completed derivatives transactions will be honored and could cause significant market disruption. CFTC Chairman Michael Selig stated that a state government cannot force a designated contract market to violate its obligations.
According to Reuters, Michigan Ingham County Circuit Court Judge Rosemarie Aquilina issued a temporary restraining order against prediction market platform Kalshi on June 29 local time upon the application of State Attorney General Dana Nessel, prohibiting it from offering sports event contract trading to Michigan residents and requiring it to connect to third-party geolocation services licensed by the state Gaming Control Board, or face a fine of $120,000 per day. Michigan thus becomes the second state to ban Kalshi through a court injunction after Nevada, while a similar injunction in Massachusetts was suspended due to Kalshi's appeal. Kalshi maintains that its business is under the exclusive jurisdiction of the U.S. Commodity Futures Trading Commission (CFTC) and stated it will continue to fight in court.
Coinbase Chief Legal Officer Paul Grewal stated that former U.S. Acting Solicitor General Prelogar, representing the Coalition for Prediction Markets, has submitted an amicus brief supporting Kalshi to the U.S. Court of Appeals for the Sixth Circuit, describing it as a “masterpiece.” Paul Grewal pointed out that the document not only outlines the historical background of the Commodity Futures Trading Commission's exclusive regulatory authority over prediction markets but also presents three key arguments:1. Prediction markets can uniquely aggregate market information and convert it into simple price signals, collectively aggregated by market participants.2. Users of prediction markets trade at prices that market participants are willing to accept. They cannot control contract prices and bear the legal obligation to provide users with fair access to contracts.3. The laws of various U.S. states are unsuitable for regulating prediction markets because their core objectives are not to maintain fair markets, price discovery, information aggregation, risk hedging, or prevent market manipulation.
Recently, Lee Chan-jin, Governor of the Republic of Korea's Financial Supervisory Service (FSS), stated that the agency is considering introducing separate stabilization measures for single-stock leveraged ETFs. During a press conference held on June 22, 2026, Lee noted that the negative effects of single-stock leveraged ETFs have intensified. In addition to strengthening monitoring of trading activities, regulators are also weighing other market stabilization measures to hedge against the cascading risks potentially triggered by the volatile swings in single-stock leveraged ETFs tracking SK Hynix and Samsung Electronics. "I am deeply concerned that ordinary investors will find it difficult to realize substantial returns, while the profits and dividends are completely pocketed by the operating institutions," Lee said.On May 27, 2026, single-stock leveraged ETFs with Samsung Electronics and SK Hynix as underlying assets were listed on the local Korean exchange, attracting a frenzy of market capital. According to statistics from the Republic of Korea's Financial Supervisory Service, the total market capitalization of these single-stock leveraged ETFs more than doubled from 4.5 trillion won on the listing date to 9.6 trillion won by June 12. The average daily turnover rate for these single-stock leveraged ETFs reached as high as 122.5%, far exceeding the 30.2% turnover rate of other leveraged and inverse ETFs. (Caixin)Possibly influenced by this news, the Republic of Korea's KOSPI index once plummeted by 7% today, triggering a circuit breaker.
Odaily Former SEC Chair and former CFTC Chair Gary Gensler, in an amicus brief filed with the U.S. Court of Appeals for the Sixth Circuit, stated that the Dodd-Frank Act does not grant the CFTC the authority to regulate sports betting.This position directly contradicts the claims of current CFTC Chair Michael Selig and prediction market platform Kalshi, who argue that contracts related to sports events fall under federal regulatory scope rather than state gambling oversight.Gensler pointed out that if the Dodd-Frank Act truly preempted state authority over sports betting, it would have been major news at the time, yet no one understood it that way. He served as CFTC Chair from 2009 to 2014 and was responsible for implementing rules under the Dodd-Frank Act.The amicus brief pertains to litigation between Kalshi and the state of Ohio. The Ohio gambling regulator had demanded Kalshi cease offering sports-related event contracts to state residents, leading Kalshi to sue the state. However, a request for a preliminary injunction was denied by the court. The CFTC supports Kalshi, arguing that Ohio has overstepped its authority.Over the past year, the CFTC has continuously sought to expand its regulatory reach over prediction markets, having sued several states to establish its jurisdiction. This week, the agency also proposed broader rules for prediction markets, generally supporting sports-related contracts while aiming to impose stricter restrictions on betting concerning events such as terrorist attacks, assassinations, and wars.
Kalshi and Polymarket have lost their bid to block gambling-related lawsuits filed by the states of Nevada and Washington. A panel of the U.S. Ninth Circuit Court of Appeals stated that federal derivatives regulation does not automatically shield prediction market platforms from enforcement of state gambling laws.The appeals court rejected the companies' request to halt the remand of the disputes back to state courts, with the judge stating that Kalshi and Polymarket failed to prove their claim that the cases fall under federal jurisdiction. This ruling deepens the legal divide over whether sports event contracts offered by prediction market companies are federally regulated derivatives or illegal gambling products under state law. (financefeeds)
The U.S. Court of Appeals for the Ninth Circuit rejected requests from Kalshi and Polymarket, allowing gambling-related cases against the two prediction market platforms in Nevada and Washington state to move forward, and remanded the cases to state court.The court ruled that the two companies failed to demonstrate that the cases should be under federal court jurisdiction. The platforms' assertion that the Commodity Exchange Act has preemptive effect is not sufficient to automatically establish federal jurisdiction.Kalshi and Polymarket previously argued that contracts on events such as sports and politics are federal derivatives regulated by the CFTC, and that states have no authority to enforce gambling laws against them. However, Nevada and Washington state contend that such contracts constitute unlicensed gambling products.This ruling highlights a growing divide among U.S. courts over whether prediction markets qualify as federally regulated swap contracts or as illegal gambling products under state law.