U.S. prediction markets regulator issues demand that clashes directly with courts

From the source

The Commodity Futures Trading Commission said regulated exchanges can't cut off customers state-by-state, but firms like Kalshi are under court orders to do so. The U.S. Commodity Futures Trading Commission is setting up another legal showdown over prediction markets companies who have been ordered by courts to stop doing business in certain states, with the federal regulator saying it's against the rules for exchanges — including Kalshi and Polymarket — to cut off customers based on geography. Kalshi and other prediction markets platforms that offer event contracts in such arenas as sporting events, weather and politics are registered with the agency as "designated contract markets" (DCMs), and they operate under federal laws that govern the derivatives sector. The CFTC is now saying that such DCMs aren't allowed to go dark in specific states and must operate nationwide, despite court rulings that demand otherwise. Companies are given 30 days to reopen their doors to closed-off…

BestAIBroker analysis

• Finance-aware sentiment: slightly negative (-0.20 on a -1 to +1 scale).
• Event classification: REGULATION.
• Market importance score: 40/100, weighting entity relevance, source credibility, multi-outlet coverage and recency.
• Symbols referenced: CME.