Kalshi's Circuit Court Split Sets Up Supreme Court Clash
Event contract platform Kalshi is facing a potential U.S. Supreme Court showdown after a recent U.S. appeals court ruling confirmed state powers over prediction markets. The legal blow sets up a rift between federal courts, specifically after the Ninth Circuit ruled that Kalshi's sports contracts aren't swaps. This decision affirmed the dissolution of Kalshi's Nevada injunction by finding no likely federal preemption, directly contradicting a preliminary conclusion from the Third Circuit.
Despite the looming legal battles, the platform remains highly capitalized. According to a recent Form D filing, Kalshi has sold $1.12 billion of a $1.5 billion equity offering. The massive capital raise includes 71 investors and relies on an SEC exemption allowing certain private offerings without formal registration.
Gemini Expands Reach Through Apex Brokerages
In a major distribution play for the industry, Gemini plans to distribute its crypto prediction markets through Apex brokerages. The proposed deal will establish Gemini as the exclusive venue for crypto event contracts offered through Apex's futures commission merchant (FCM). As traditional brokerages begin integrating these platforms, utilizing resources like predictionmarketstools.com will become increasingly essential for retail traders navigating the expanding ecosystem.
CFTC Navigates Polymarket Insider Case and Hyperliquid Onshoring
The Commodity Futures Trading Commission (CFTC) continues to heavily police and shape the decentralized derivatives landscape. A federal judge recently stayed the CFTC's civil case against a U.S. soldier accused of using nonpublic information to place an illegal Polymarket bet, though the regulator is actively attempting to weigh in on the concurrent criminal case.
Meanwhile, the regulatory agency is also working on domestic expansion. President Trump recently announced that CFTC Chair Michael Selig is working to bring the geoblocked perpetual futures venue Hyperliquid into the U.S. "in a fully compliant and legal fashion." The announcement immediately sent shares of HYPE and Hyperliquid Strategies climbing, while traditional exchanges CME and Cboe traded lower on the news.