Federal Judge Rules Crypto Prediction Markets May Escape State Gambling Laws, Grants Coinbase and Kalshi Preliminary Injunction

A federal judge in Illinois partially granted a preliminary injunction, blocking the state from applying its sports betting license rules to certain prediction market contracts offered by Kalshi and Coinbase. The judge found the contracts are likely swaps under federal law, falling under CFTC jurisdiction. This creates a split with a prior Wisconsin ruling, now under appeal.

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