Appeals court lets Kalshi operate in New Jersey under CFTC
Business
A US appeals court just sided with Kalshi, a platform where people predict outcomes of events (think: sports and more).
The 2-1 decision means Kalshi can keep operating in New Jersey, and the state cannot use its gaming laws to shut it down.
The big takeaway? Only the Commodity Futures Trading Commission (CFTC) gets to regulate Kalshi's sports-related event contracts.
Court affirms Kalshi swap classification
Kalshi argued its contracts are "swaps" under federal law, so only the CFTC should call the shots.
The court agreed, even though one judge worried these markets look a lot like online sportsbooks.
This ruling gives the CFTC more power, not just over Kalshi, but also in similar fights happening in states like Arizona and Massachusetts.