A panel of the U.S. Sixth Circuit Court of Appeals ruled that sports-related event contracts offered by prediction-market provider Kalshi are not swaps. As a result, the contracts do not fall under federal regulatory oversight, according to CoinDesk. The decision represents another setback for Kalshi in its dispute over the regulatory treatment of sports contracts and indicates that such products are subject to state regulations instead. The ruling adds to the legal uncertainty surrounding prediction markets that offer contracts tied to sports events. The case does not concern the crypto assets listed alongside this report, but the decision may be relevant to broader discussions about the regulatory boundaries for event-based trading platforms.
