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New Jersey's attorney general has asked the Supreme Court to resolve whether states can regulate sports wagers offered through prediction markets like Kalshi. The move follows a split between federal appeals courts: the 3rd Circuit ruled such bets are federally regulated swaps outside state control, while the 9th Circuit found they are simply gambling by another name and can be blocked by states like Nevada.
The Clarity Act, a bill meant to set clear market-structure rules for digital assets by dividing oversight between the SEC and CFTC, failed to get a vote before the Senate's August recess. Senate Majority Leader John Thune has now scheduled a procedural vote for September 15, but unresolved disputes over stablecoin rewards and ethics provisions tied to President Trump's crypto holdings could still stall progress. Industry figures, including SALT CEO John Darsie, say they doubt the bill can pass before the 2026 midterms complicate the legislative calendar.
Prediction market Kalshi has permanently banned former Rep. George Santos and fined him $71,356, citing his lack of cooperation during an internal insider-trading probe. Santos had profited over $17,500 by betting he'd skip the State of the Union, then selling those contracts after publicly claiming he'd attend. He previously settled separate CFTC charges over the same scheme, paying more than $35,000 and receiving a three-year trading ban from the agency.
Prediction market Kalshi has permanently banned former congressman George Santos and fined him $71,356, marking the platform's first-ever lifetime ban. Santos had allegedly profited over $17,500 by betting he'd skip the State of the Union due to travel issues, then selling those contracts after claiming publicly he would attend. Kalshi says it flagged the scheme to regulators and imposed the harsher penalty because Santos failed to cooperate fully with its internal investigation.
Kalshi issued its first-ever lifetime ban against former Rep. George Santos and fined him $71,356 for insider trading and market manipulation. Santos had placed bets on whether he'd attend Trump's February 2026 State of the Union address, then posted misleading claims about attending to move contract prices before revealing he was actually at an airport. Kalshi froze his account and referred the case to the CFTC, which he settled with earlier this summer for $35,000.
A federal appeals court ruled Friday that Nevada may enforce its gambling statutes against Kalshi's sports-related prediction contracts, rejecting the company's claim that CFTC oversight shields it from state gaming law. The Ninth Circuit panel called Kalshi's sports event contracts functionally identical to sportsbook bets and dismissed its attempt to distinguish them as disingenuous.