Connecticut can’t take action against Kalshi for now, judge rules

A US federal judge granted prediction markets platform Kalshi a temporary reprieve, ordering the Connecticut Department of Consumer Protection (DCP) to refrain from enforcement action while the court considers Kalshi's motion for a preliminary injunction. The DCP had issued a cease and desist order to Kalshi, Robinhood, and Crypto.com on December 2, alleging they were conducting unlicensed online sports wagering. Kalshi sued the DCP the next day, asserting its event contracts are lawful under federal law and fall under the exclusive jurisdiction of the Commodity Futures Trading Commission (CFTC). The judge set deadlines for responses and oral arguments for mid-February. This action is part of a broader conflict, as Kalshi, a CFTC-regulated designated contract market, faces similar legal challenges from regulators in multiple states, including New York, Massachusetts, New Jersey, Nevada, Maryland, and Ohio, over whether its offerings are subject to state gambling laws.

(Source：Cointelegraph)