Nevada Fires Back, Calls Kalshi's Bid to Pause Court Case a 'Stalling Tactic'
Newly revealed court documents show the state of Nevada taking a firm stance against prediction market platform Kalshi. The platform had asked the U.S. Court of Appeals for the Ninth Circuit to put its case on hold, pending the outcome of a rulemaking process by the Commodity Futures Trading Commission (CFTC).
The Legal Heart of the Matter: Can CFTC Rules Change the Game?
In its filing, Nevada argues that the court's prior ruling on the central issue—the nature of the contracts in question—is on solid legal ground. The appellate court previously determined that these contracts do not qualify as 'swaps' under the Commodity Exchange Act.
"This conclusion was not based on CFTC interpretation or future policy," the state's counsel emphasized. "It was the court's own legal judgment, derived from the text, context, and congressional purpose of the statute itself."
Therefore, Nevada contends, any future rules from the CFTC cannot alter or overturn this judicial determination. Tying the litigation to an unrelated administrative process lacks merit.
Accusations of Delay and a Defense of Process
The state's opposition is notably sharp in its language, labeling Kalshi's request for a stay as a "stalling tactic."
The filing alleges that Kalshi's true aim is not to await a relevant rulemaking, but to use procedural maneuvering to indefinitely prolong the appellate process. The ultimate goal, Nevada claims, is to extend the lifespan of its operations within the state, which the state alleges are unlawful.
This legal battle extends beyond a single case, touching on the broader tension between state regulatory authority and innovative fintech platforms. Nevada's uncompromising position signals a protracted fight over the legal status of prediction markets.