Crypto: Kalshi, Polymarket Face Trading Halt In Nevada After Court Rulings
The two separate rulings add new regulatory pressure as prediction markets also face scrutiny over information advantages and suspected insider activity tied to event-driven contracts.
Two US federal court rulings have increased the risk that Nevada regulators may seek to halt prediction-market trading in the state after a judge sent a dispute involving Polymarket’s parent company Blockratize and Kalshi back to state court in two separate rulings.
A federal judge rejected arguments that US regulation under the Commodity Exchange Act (CEA) and the Commodity Futures Trading Commission (CFTC) fully preempts state gaming laws for prediction markets, according to a Monday order.
The judge found that the CEA’s savings clause does not completely displace state authority and that the companies had not shown a basis to block Nevada’s action at this stage.
The decision means the Nevada Gaming Control Board can continue pursuing its civil enforcement case in state court, where it could seek an injunction restricting Nevada residents from accessing event contracts offered by Polymarket or Kalshi.
In response to the ruling, Polymarket’s parent company submitted a motion to request a brief administrative stay of the court’s remand order, the filing shows.
The motion is a legal request seeking to freeze a court ruling or enforcement action seen as a short-term emergency measure.
Related: Prediction markets emerge as speculative ‘arbitrage arena’ for crypto traders
The Nevada decision comes as prediction markets face mounting pressure from state regulators, including Kalshi, which has been fighting Nevada’s gaming regulator since 2025.
On Tuesday, a federal judge also remanded Nevada’s civil enforcement action against Kalshi back to state court, exposing Kalshi to an “imminent temporary restraining order” barring it from offering event contracts in the state, according to a court filing seen by sports betting and gaming-focused lawyer Daniel Wallach.
Source: CoinTelegraph
