U.S. Prediction Markets Hit State-Level Restrictions
Kalshi, a crypto-based prediction market platform, is being restricted from operating in Washington state and other jurisdictions as state regulators take independent action against the service. The company is contesting these state-level restrictions in court while its federal regulator, the CFTC, simultaneously develops new rules for the sector.
The divergence between state and federal regulatory approaches reflects ongoing uncertainty about prediction markets' classification and oversight. State governments are moving to block access before federal frameworks solidify, creating a patchwork of restrictions that platforms must navigate.
EU's MiCA Framework Extends to DeFi Lending Amid Implementation Challenges
The European Commission is reviewing whether decentralized finance lending protocols should fall under the Markets in Crypto-Assets (MiCA) regulation, potentially expanding the framework beyond centralized platforms. This expansion reflects Brussels' intent to capture lending activity currently occurring on-chain through decentralized vaults and smart contracts.
