Platforms & regulators

Another US appeals court says states can regulate Kalshi's sports contracts

A US appeals court ruled that Kalshi's sports-related prediction market contracts can be regulated by states, not only federal regulators.

It's the second such ruling in less than a month: a Sixth Circuit panel found these contracts aren't swaps — a type of derivative — and therefore aren't subject to exclusive federal oversight.

For beginners When courts decide a financial instrument isn't covered by federal rules, states can step in to regulate it — this is how the boundaries of oversight get drawn for new kinds of markets.