Court allows Kalshi to resume Tennessee operations pending legal review

A U.S. federal court in Tennessee has ordered the state to temporarily withdraw a cease-and-desist order against prediction market operator Kalshi. The court found there is a legitimate legal dispute over whether Kalshi, as a Designated Contract Market (DCM) regulated by the Commodity Futures Trading Commission (CFTC), is subject to state gambling laws, CoinDesk reported. Consequently, Kalshi will be allowed to continue its operations in Tennessee until the court reaches a final judgment on whether its sports-based event contracts are derivatives protected under federal law. Tennessee regulators had previously ordered the platform to halt its operations, arguing that its sports event contracts amounted to illegal gambling.