"A 3rd US Circuit Court of Appeals panel ruled that New Jersey has no authority to regulate Kalshi's prediction market, affirming that the power rests with the Commodity Futures Trading Commission."
"Online prediction markets allow users to bet on outcomes ranging from sports to military actions, but have shown evidence of insider trading, with a small percentage of accounts capturing significant profits."
"Multiple state gaming regulators have filed legal challenges against Kalshi and Polymarket, claiming that prediction markets are illegal gambling businesses, while the CFTC has sued states over their regulatory attempts."
A federal court ruled that New Jersey cannot regulate Kalshi's prediction market, affirming that the Commodity Futures Trading Commission holds that authority. The CFTC, led by a Trump appointee, supports prediction markets. These markets allow betting on various outcomes, but have faced scrutiny for potential insider trading. Legal challenges from state regulators claim prediction markets are illegal gambling. The ruling is significant as it is the first federal decision favoring prediction markets amidst ongoing state-level disputes.
Read at Engadget
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