In brief
Gary Gensler, one of crypto's most aggressive regulators, has emerged as an ally of states challenging the CFTC-backed prediction market industry.
Gensler said concerns over gambling and addiction should be left to the states.
As the legal fight spreads across states, tribes, gaming groups, and state regulators are increasingly challenging Kalshi's claim of exclusive federal jurisdiction.
Former Commodity Futures Trading Commission and Securities and Exchange Commission chair Gary Gensler filed an amicus brief late Thursday with the Sixth Circuit Court of Appeals, saying that Congress did not hand the CFTC the keys to nationwide sports wagering when it passed the Dodd-Frank Act in 2010, and that state gaming laws still stand."Thirty Native American tribes and 11 tribal associations have filed an amicus curiae brief in support of Ohio in the Sixth Circuit prediction markets appeal," gaming attorney and prediction market expert Daniel Wallach tweeted, referring to Kalshi's appeal after federal district judge Sarah Morrison denied the platform's request for a preliminary injunction in its challenge to state cease-and-desist orders.
