Arizona AG Escalates Legal Clash with Kalshi
On Tuesday, Arizona Attorney General Kris Mayes escalated a multi-state legal battle by filing 20 criminal counts against prediction market operator Kalshi. According to CoinDesk, the charges allege that the federally regulated platform is operating as an "illegal gambling operation" within the state.
A spokesperson for the prediction market fired back, telling Cointelegraph that the state's criminal case relies on "paper-thin arguments." The company maintains that its operations fall exclusively under federal jurisdiction. Traders monitoring how these state-level regulatory actions impact market volume and availability can track real-time data using predictionmarketstools.com.
Lawmakers Introduce 'BETS OFF Act'
Meanwhile, federal lawmakers are setting their sights on geopolitical prediction markets. Two Democratic lawmakers have introduced the BETS OFF Act in direct response to what they described as "highly unusual bets" regarding the US-Israel conflict with Iran. As reported by Cointelegraph, the legislation aims to crack down on war-related wagers following suspicions that traders possessed insider information.
CFTC Clears Phantom Wallet for Derivatives
In more positive regulatory developments for decentralized markets, the Commodity Futures Trading Commission (CFTC) has cleared the Phantom self-custody crypto wallet to connect users directly to regulated derivatives markets. Decrypt notes that this ruling allows Phantom's developers to avoid registering as a broker.
This clearance arrives alongside landmark guidance where the SEC and CFTC jointly declared that "most crypto assets" are not securities, ending a decade of lawsuits. Despite this regulatory breakthrough, Bitcoin remains stuck below the $75,000 resistance level, leaving the broader digital asset market in limbo.