Utah just opened a new front in the war over prediction markets.
Attorney General Derek Brown sued Kalshi on Tuesday, calling its event contracts illegal gambling — and in a first, going after the market makers too. Five Kalshi entities plus Susquehanna International Group and Susquehanna Government Products are named.
Utah estimates $30.6–61.2M in fees from 32,000+ accounts, and wants sports, election, politics, culture, and 'mentions' contracts blocked, court-approved geofencing, plus restitution.
Back in August, a federal judge ruled CFTC oversight doesn't preempt Utah's gambling laws; the Tenth Circuit denied Kalshi's stay in September. Kalshi appealed, saying no single state 'should have a veto' over a federally regulated exchange.
Why it matters: Kalshi is the CFTC-regulated venue where the first US crypto perps were approved and where Webull's Bitcoin perps will trade from November. If states can slice contracts off one injunction at a time, the 'national exchange' idea dies by fifty cuts.
Those figures are Utah's estimates, not findings. If Utah wins, which AG goes next — and what happens to crypto contracts on Kalshi? NFA. DYOR.
#CryptoNews #PredictionMarkets #Kalshi #Regulation
Attorney General Derek Brown sued Kalshi on Tuesday, calling its event contracts illegal gambling — and in a first, going after the market makers too. Five Kalshi entities plus Susquehanna International Group and Susquehanna Government Products are named.
Utah estimates $30.6–61.2M in fees from 32,000+ accounts, and wants sports, election, politics, culture, and 'mentions' contracts blocked, court-approved geofencing, plus restitution.
Back in August, a federal judge ruled CFTC oversight doesn't preempt Utah's gambling laws; the Tenth Circuit denied Kalshi's stay in September. Kalshi appealed, saying no single state 'should have a veto' over a federally regulated exchange.
Why it matters: Kalshi is the CFTC-regulated venue where the first US crypto perps were approved and where Webull's Bitcoin perps will trade from November. If states can slice contracts off one injunction at a time, the 'national exchange' idea dies by fifty cuts.
Those figures are Utah's estimates, not findings. If Utah wins, which AG goes next — and what happens to crypto contracts on Kalshi? NFA. DYOR.
#CryptoNews #PredictionMarkets #Kalshi #Regulation