Two of the six prediction-market operators Missouri targeted just called in a federal judge.
On Friday, Novig and the CFTC-registered derivatives exchange owned by a major crypto trading platform filed separate lawsuits in Missouri federal court, fighting the state's September cease-and-desist letters. The state gave operators a 30-day window — closed October 17 — to stop offering sports event contracts to Missourians or take a state gambling license carrying a 10% tax on gross receipts and a 21-and-over rule.
Their argument: the Commodity Exchange Act gives the CFTC exclusive jurisdiction over swaps on federally designated contract markets, preempting state gambling law.
The honest part: courts are split. The 6th and 9th Circuits ruled against Kalshi, the 3rd sided with it, and the 8th — which covers Missouri — is hearing a pending Kalshi appeal. Kalshi, Polymarket, Robinhood and Underdog haven't sued as of Monday.
The tape says jurisdiction lawfare, not price news: BTC flat at $82,565, ETH at $2,424.
When the 8th Circuit rules, does every other state get a template — or a dead end? NFA. DYOR.
#Regulation #PredictionMarkets
On Friday, Novig and the CFTC-registered derivatives exchange owned by a major crypto trading platform filed separate lawsuits in Missouri federal court, fighting the state's September cease-and-desist letters. The state gave operators a 30-day window — closed October 17 — to stop offering sports event contracts to Missourians or take a state gambling license carrying a 10% tax on gross receipts and a 21-and-over rule.
Their argument: the Commodity Exchange Act gives the CFTC exclusive jurisdiction over swaps on federally designated contract markets, preempting state gambling law.
The honest part: courts are split. The 6th and 9th Circuits ruled against Kalshi, the 3rd sided with it, and the 8th — which covers Missouri — is hearing a pending Kalshi appeal. Kalshi, Polymarket, Robinhood and Underdog haven't sued as of Monday.
The tape says jurisdiction lawfare, not price news: BTC flat at $82,565, ETH at $2,424.
When the 8th Circuit rules, does every other state get a template — or a dead end? NFA. DYOR.
#Regulation #PredictionMarkets