What happens if the U.S. Supreme Court declines to weigh in on the legal battle over prediction markets? The answer could reshape the regulatory landscape for exchanges, state gambling laws, and the industry’s future.
In a new DeFi Rate article, CM Law Partner Linda Goldstein examines what could happen if the Court declines to hear the pending Kalshi cases, leaving competing federal appeals court rulings in place.
Linda explains why the Court might delay review, how the Commodity Futures Trading Commission (CFTC) could adjust its litigation and rulemaking strategies, and why prediction market operators may shift more resources toward lobbying Congress for a national framework.
Her analysis also explores the central jurisdictional dispute: whether sports event contracts are financial instruments subject to federal commodities regulation or gambling products governed by state law.
The bottom line: Without a definitive ruling from the Supreme Court or Congress, prediction market operators could face continued uncertainty as regulators, states, and industry players battle over who sets the rules.
If you have questions on what this means for your organization, please connect with Linda directly at lgoldstein@cm.law.
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The foregoing content is for informational purposes only and should not be relied upon as legal advice. Federal, state, and local laws can change rapidly and, therefore, this content may become obsolete or outdated. Please consult with an attorney of your choice to ensure you obtain the most current and accurate counsel about your particular situation.
