A federal judge in the Northern District of Illinois has partially granted a motion for a preliminary injunction filed by Coinbase, Kalshi, the U.S. government, and the Commodity Futures Trading Commission, temporarily blocking Illinois from imposing sports betting licensing requirements and related criminal penalties on the Kalshi sports event contracts at issue. According to crypto lawyer Ariel Givner, Judge Martha Pacold said the contracts are likely to fall under the definition of swaps in the Commodity Exchange Act. On that basis, the court indicated that the relevant Illinois state-law provisions are likely preempted by federal law. The ruling is preliminary and applies to the contracts involved in the case.
On Oct. 3, crypto lawyer Ariel Givner said Judge Martha Pacold of the U.S. District Court for the Northern District of Illinois partially granted a motion for a preliminary injunction filed by Coinbase, Kalshi, the U.S. government, and the Commodity Futures Trading Commission.
The order temporarily blocks Illinois from applying sports betting licensing requirements and related criminal penalties to the Kalshi sports event contracts involved in the case.
Judge Pacold said the contracts are likely swaps under the Commodity Exchange Act. The court also indicated that the relevant state-law provisions are likely preempted by federal law.
This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan. Disclaimer:
The market information, project data, and third-party content displayed on this platform are for industry information sharing only and do not constitute any form of investment advice or return commitment.
Cryptocurrency trading carries high risks. Users should fully assess their risk tolerance and make independent decisions. All profits, losses, and legal responsibilities are borne by the users themselves.
