TLDR Tech / Crypto
DOJ and CFTC Argue Sports Event Contracts Are Financial Swaps
The DOJ and CFTC sued Illinois, Arizona, and Connecticut, arguing that sports prediction market contracts on CFTC-designated exchanges like Kalshi are "swaps" under the Commodity Exchange Act and that federal jurisdiction preempts state gambling laws. A Third Circuit court ruled 2-1 on April 6 that Kalshi's sports event contracts are swaps under the CEA, affirming a preliminary injunction barring New Jersey from enforcing its gambling laws against the platform. States counter that contracts tracking sports outcomes function as traditional wagers and should carry age restrictions and consumer protections, setting up a broader federal-versus-state battle over who regulates prediction markets.
Read the full story