REGULATION · US
U.S. appeals court upholds state authority to regulate prediction markets
Federal appeals court rejected Kalshi's challenge to CFTC authority, ruling states retain power to regulate prediction markets. Reinforces regulatory fragmentation risk for fintech platforms operating across jurisdictions.
WHY IT MATTERS
Fintech operators and digital-asset platforms must now navigate dual state/federal enforcement. For BFSI: sets precedent that financial innovation faces state-level friction. Expect state AGs to increase scrutiny of bank-backed fintech ventures.
Source: Reuters · 2026-09-25