🔔 After Kalshi’s Appeal, Dispute Over Regulatory Compliance of Prediction Markets May Reach the U.S. Supreme Court HuoXing Finance reports: On Thursday, April 17, the U.S. Ninth Circuit Court of Appeals heard oral arguments from attorneys representing the prediction market platform Kalshi and Nevada state officials regarding Nevada’s ban on Kalshi’s event contracts. This appeal stems from a lower court ruling that prohibited Kalshi from offering certain event-based contracts in Nevada, based on the claim that Kalshi requires a license. The judges presiding over Thursday’s oral arguments and Kalshi’s legal team acknowledged that multiple state enforcement actions have been launched against Kalshi and other prediction market platforms, including criminal charges filed in Arizona. However, last week, a federal court blocked Arizona authorities from enforcing the state’s gambling laws against Kalshi’s event contracts. “I believe existing case law clearly indicates that what we must avoid here is having both state and federal courts simultaneously adjudicating the exact same issue and potentially reaching conflicting conclusions,” said Colleen Sinzdak, counsel for Kalshi. The core argument in Kalshi’s defense is that its event contracts qualify as “swaps” and thus fall under the jurisdiction of the Commodity Futures Trading Commission (CFTC), not state gambling regulators. CFTC Chair Michael Selig has supported this position in the case involving prediction markets and Nevada authorities at https://t.co/Qdyv2eQbXC. Coinbase Chief Legal Officer Paul Grewal predicts the case could ultimately reach the U.S. Supreme Court. “The questions posed during oral arguments are not reliable indicators of the court’s inclination; regardless, I stand by my long-standing prediction that the Supreme Court will rule on whether sports contracts on designated contract markets constitute swaps under the CFTC’s exclusive jurisdiction.” https://t.co/1FZZ9qmHnM