The Swap Lie: When Innovation Meets Regulatory Reality A recent federal appeals court decision has dealt a significant blow to Kalshi's efforts to sidestep state gambling regulations by rebranding its sports betting products as "swaps.
" A unanimous panel of three judges, all appointed by the Trump administration, ruled against Kalshi in the US Court of Appeals for the 9th Circuit.
The decision upholds Nevada's authority to regulate prediction markets and highlights a broader trend: the tension between innovative financial products and traditional regulatory frameworks.