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Kalshi Will Win Battle with Nevada: Crypto Attorney

Published

5 месяцев ago

9 апреля, 2025

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The American legal tradition of federalism, balancing state authority with federal control, is being tested by a new frontier: online prediction markets.

At the center of everything is Donald Trump Jr., advised Kalshi. Nevada and New Jersey have issued cease-and-desist orders against Kalshi over the prediction market’s sports contracts, claiming they violate state gambling laws.

But Kalshi has hit back, arguing that what it offers isn’t gambling and that it’s regulated by the Commodity Futures Trading Commission and the Commodities Exchange Act as it is a prediction market, not a gambling venue – an argument that crypto attorney Aaron Brogan says should be an easy win in court.

«I think clearly Kalshi is going to win these cases,» Brogan said in an interview with CoinDesk. «If you look at the language of the Commodity Exchange Act (CEA), it says that the CFTC has exclusive jurisdiction over any contracts that fall within its regulatory purview, which derivative contracts and event contracts clearly do.»

Prediction markets like Kalshi and Polymarket operate as neutral intermediaries, matching orders just like any other exchange under CFTC purview. There’s no sportsbook with a prediction market; the operator of the market doesn’t bet against its users.

For prediction market operators, sports has been a significant growth area. Data from Polymarket Analytics shows the category has surpassed the 2024 election for volume.

«[Kalshi is] not taking a side of the bet as the market in that case, which fundamentally changes the incentives involved and makes the product different in a holistic way,” Brogan explained.

Kalshi has self-certified these event contracts with the CFTC, a process allowing federally regulated derivatives exchanges to list new products by attesting their compliance with regulatory requirements without needing explicit pre-approval from the agency.

For its part, the CFTC seems to be receptive to the argument that the outcomes of sports games are commodities, with President Donald Trump’s pick to run the commission, Brian Quintenz, arguing in 2021 that they can serve a legitimate economic purpose as hedging instruments, distinct from pure betting activities, and thus should not automatically be prohibited under the CEA.

Brogan recognizes the reasoning behind Nevada’s concerns, given the state’s historical reliance on gambling revenues.

However, he points out that Nevada’s actions against Kalshi could inadvertently raise serious questions about the legitimacy of Nevada’s own gambling markets.

By categorizing Kalshi’s federally regulated event contracts as gambling, Nevada regulators have unintentionally highlighted that their own state-approved gambling operations, such as sports betting markets and other event-based wagering, might themselves technically qualify as derivative contracts.

“In that case, federal preemption could theoretically crowd out state authority to oversee those gambling markets at all,” said Brogan.

A victory for Kalshi, said Brogan, could transform American sports betting culture entirely if it’s done through prediction markets instead of traditional gambling companies.

Brogan notes that if Kalshi prevails, states could respond politically or legally, possibly lobbying Congress or filing an Administrative Procedure Act claim against the CFTC, although he doubts such challenges would succeed.

Ultimately, Kalshi’s litigation against state regulators presents a landmark federalism dilemma: Can states retain traditional authority over gambling regulation, or will federal regulatory frameworks dominate in the digital age?

«This is incredibly complicated,» Brogan concluded, «and we’re right on the cusp of litigation that could definitively define who will predominate. It’s complex, but it’s going to be really important.»

Business

Crypto Trading Firm Keyrock Buys Luxembourg’s Turing Capital in Asset Management Push

Published

23 часа ago

16 сентября, 2025

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Crypto trading firm Keyrock said it’s expanding into asset and wealth management by acquiring Turing Capital, a Luxembourg-registered alternative investment fund manager.

The deal, announced on Tuesday, marks the launch of Keyrock’s Asset and Wealth Management division, a new business unit dedicated to institutional clients and private investors.

Keyrock, founded in Brussels, Belgium and best known for its work in market making, options and OTC trading, said it will fold Turing Capital’s investment strategies and Luxembourg fund management structure into its wider platform. The division will be led by Turing Capital co-founder Jorge Schnura, who joins Keyrock’s executive committee as president of the unit.

The company said the expansion will allow it to provide services across the full lifecycle of digital assets, from liquidity provision to long-term investment strategies. «In the near future, all assets will live onchain,» Schnura said, noting that the merger positions the group to capture opportunities as traditional financial products migrate to blockchain rails.

Keyrock has also applied for regulatory approval under the EU’s crypto framework MiCA through a filing with Liechtenstein’s financial regulator. If approved, the firm plans to offer portfolio management and advisory services, aiming to compete directly with traditional asset managers as well as crypto-native players.

«Today’s launch sets the stage for our longer-term ambition: bringing asset management on-chain in a way that truly meets institutional standards,» Keyrock CSO Juan David Mendieta said in a statement.

Business

Crypto Trading Firm Keyrock Buys Luxembourg’s Turing Capital in Asset Management Push

Published

23 часа ago

16 сентября, 2025

admin

Crypto trading firm Keyrock said it’s expanding into asset and wealth management by acquiring Turing Capital, a Luxembourg-registered alternative investment fund manager.

The deal, announced on Tuesday, marks the launch of Keyrock’s Asset and Wealth Management division, a new business unit dedicated to institutional clients and private investors.

Business

Gemini Shares Slide 6%, Extending Post-IPO Slump to 24%

Published

23 часа ago

16 сентября, 2025

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Gemini Space Station (GEMI), the crypto exchange founded by Cameron and Tyler Winklevoss, has seen its shares tumble by more than 20% since listing on the Nasdaq last Friday.

The stock is down around 6% on Tuesday, trading at $30.42, and has dropped nearly 24% over the past week. The sharp decline follows an initial surge after the company raised $425 million in its IPO, pricing shares at $28 and valuing the firm at $3.3 billion before trading began.

On its first day, GEMI spiked to $45.89 before closing at $32 — a 14% premium to its offer price. But since hitting that high, shares have plunged more than 34%, erasing most of the early enthusiasm from public market investors.

The broader crypto equity market has remained more stable. Coinbase (COIN), the largest U.S. crypto exchange, is flat over the past week. Robinhood (HOOD), which derives part of its revenue from crypto, is down 3%. Token issuer Circle (CRCL), on the other hand, is up 13% over the same period.

Part of the pressure on Gemini’s stock may stem from its financials. The company posted a $283 million net loss in the first half of 2025, following a $159 million loss in all of 2024. Despite raising fresh capital, the numbers suggest the business is still far from turning a profit.

Compass Point analyst Ed Engel noted that GEMI is currently trading at 26 times its annualized first-half revenue. That multiple — often used to gauge whether a stock is expensive — means investors are paying 26 dollars for every dollar the company is expected to generate in sales this year. For a loss-making company in a volatile sector, that’s a steep price, and could be fueling investor skepticism.