Prediction Markets Face Legal Setback
Kalshi, a crypto-native prediction market platform, suffered a legal defeat as a U.S. appeals court confirmed state regulatory authority over event contracts. The ruling creates conflicting precedent among federal courts on the treatment of event contracts, indicating potential Supreme Court intervention may be necessary to establish uniform national standards.
The decision signals ongoing uncertainty in the regulatory classification and oversight of prediction markets, with state and federal authorities maintaining overlapping claims to jurisdiction. This legal fragmentation complicates business planning for platforms operating across multiple states.
Trump-Linked Token Collapse Raises Promotion Concerns
A token designated GOLD and promoted through accounts linked to Trump experienced a approximately 98% price decline. Accounts connected to the promotion team sold 224.5 million tokens before the collapse, and associated X posts were subsequently deleted.
