Kalshi scores appeals court win in battle over state crackdown on sports contracts
An appeals court ruled Kalshi's sports contracts are federally regulated derivatives, blocking New Jersey's crackdown.Summary
Kalshi has secured a significant victory in its legal battle against New Jersey's attempt to shut down its sports-related event contracts. The U.S. Court of Appeals for the Third Circuit upheld a preliminary injunction, preventing New Jersey from enforcing its gambling laws against Kalshi. The court found that Kalshi has a strong likelihood of succeeding on its claim that the Commodity Exchange Act preempts New Jersey's regulations. This ruling allows Kalshi's sports contracts, which the court believes likely qualify as swaps traded on a CFTC-licensed platform, to continue operating while the case proceeds. The decision is crucial for Kalshi's national fight over prediction markets, though it contrasts with losses in other states like Nevada and Maryland.
(Source：Crypto Briefing)