US federal judge says CFTC order protecting Kalshi "smacks of collusion"

Odaily reports: On November 10, Judge Colleen McMahon of the U.S. District Court for the Southern District of New York denied prediction market Novig's motion for a preliminary injunction against the State of New York, finding that its sports event contracts likely do not qualify as swaps under the Commodity Exchange Act and that New York State may apply its gambling laws to them. Novig filed a notice of appeal with the Second Circuit Court of Appeals several hours later.

McMahon also criticized the U.S. Commodity Futures Trading Commission (CFTC) for previously issuing an order requiring Kalshi to continue operating after New York State sued it, saying the order "smacks of collusion between the regulator and the regulated." She argued that the CFTC's relevant rules define event contracts such as sports as swaps while simultaneously stating that sports betting and casino wagers are not swaps, an inherent contradiction between the two. (Bitcoin.com News)