US court rules CFTC has authority over Kalshi, not New Jersey

A U.S. federal appeals court in Philadelphia has ruled that New Jersey lacks the authority to regulate the prediction market Kalshi under its state gambling laws, asserting that jurisdiction lies with the Commodity Futures Trading Commission (CFTC), Decrypt reported. The decision stems from an appeal filed by Kalshi after New Jersey's gambling regulators ordered the platform to cease operations, classifying its sports-related offerings as unregistered betting. The outlet noted that as an appellate court decision, the case may ultimately be decided by the Supreme Court. While state-level judgments on the matter vary, the Trump administration maintains that prediction markets fall under CFTC oversight and are not subject to individual state gambling laws, even filing lawsuits against local governments on the issue. On X, CFTC Chairman Mike Selig said the ruling reaffirms Congress's intent to grant regulatory jurisdiction to the CFTC. He added that he welcomed the court's decision to nullify the regulatory attempt by New Jersey authorities.