The U.S. Commodity Futures Trading Commission (CFTC) has dropped its appeal in its case against Kalshi, a New York-based prediction market, according to a Monday court filing, finally clearing the way for the platform to offer political event contracts.

Under the conditions of the motion for voluntary dismissal, which is still subject to court approval, both parties will pay their own legal costs and Kalshi waives any right to sue the CFTC for the litigation.

«Today is historic. We have always believed that doing things the right way, no matter how hard, no matter how painful, pays off. This result is proof of that,” Kalshi CEO Tarek Mansour said in a statement. “Kalshi’s approach has officially and definitively secured the future of prediction markets in America.»

Kalshi’s fight with the CFTC began in 2023, when the regulator denied Kalshi’s plan to let users bet on which party would control the chambers of Congress. At the time of the denial, the CFTC — then under the leadership of former Chair Rostin Behnam — claimed that such contracts involved unlawful gaming and were “contrary to the public interest.”

That November, Kalshi sued the CFTC in Washington, D.C., claiming that the CFTC had overstepped its authority in attempting to block the contracts, and asking a judge to vacate the decision. The court sided with Kalshi in September 2024, clearing the way for the platform to list the political contracts.

Immediately after losing the case, the CFTC scrambled to undo the district judge’s decision. It applied for a 14-day stay of the order — basically, a two-week delay on Kalshi’s ability to list the contracts while the CFTC prepared for an appeal — and was denied. Then, it filed an appeal, reiterating many of the same arguments it had used in its original defense.

However, shortly after oral arguments in early January, U.S. President Donald Trump returned to office. His eldest son, Don Jr., joined Kalshi as a strategic advisor on January 13. Rob Schwartz, the CFTC’s general counsel at the time the appeal was filed, left the agency in April after withdrawing from the case in March.

Under the leadership of acting Chair Caroline Pham, the agency has changed its approach to crypto, cutting several pieces of crypto-related guidance and narrowing down its once-wide variety of enforcement task forces down to just two, in an effort to simplify its regulation and enforcement of the crypto industry.

New Hampshire has become the first state to allow the investment of its public funds into crypto assets with its governor signing the new law on Tuesday.

The state beat a number of others to the punch this year as what had started as a surge in state lawmaker momentum had run into roadblocks over recent weeks. As the first to authorize its treasurer to set up such a reserve, New Hampshire could very well beat the U.S. government in forming a stockpile, too.

«New Hampshire is once again first in the Nation,» New Hampshire Governor Kelly Ayotte, a Republican who’s in her first year in office, posted on social media site X.

The New Hampshire bill allows the investment of up to 5% of public funds in a digital asset that has at least $500 billion in market capitalization, currently leaving bitcoin (BTC) as the only qualifying asset.

State House Republicans there also posted on X Tuesday, boasting that their state is «OFFICIALLY the first state to lay the groundwork for a strategic bitcoin reserve.»

«The Live Free or Die state is leading the way in forging the future of commerce and digital assets,» they wrote.

Though Arizona had been the first state to get a similar measure to its governor’s desk, that legislation was vetoed. Florida has also withdrawn its own effort, joining a number of other states where the reserve push has fizzled.

President Donald Trump had called for his administration to set up its own bitcoin reserve and a separate crypto stockpile, though the Treasury Department is still examining what the federal government has on hand that can be redirected into those eventual funds.

Read More: Trump’s Crypto Sherpa Bo Hines Says Crypto Legislation on Target for Quick Completion

Democrats in the U.S. House of Representatives derailed what was supposed to be a joint hearing on crypto policy efforts on Tuesday, insisting that President Donald Trump’s personal crypto dealings were too urgent to allow other discussion on instituting industry regulations.

«I object to this joint hearing because of the corruption of the president of the United States and his ownership of crypto and his oversight of all the agencies,» said Maxine Waters, the ranking Democrat on the House Financial Services Committee, effectively robbing the gathering of its official status that required unanimous consent to proceed with the panel’s joint hearing alongside the House Agriculture Committee.

Waters issued an invitation for people to come join the Democrats in another room «to discuss what we should be discussing: Trump’s crypto corruption.

With raised voices speaking over each other at the start of the aborted hearing, Democrats insisted to their Republican counterparts that the president’s digital assets ties — including his own memecoin and connections to World Liberty Financial — needed to be dealt with. Republicans, having introduced a discussion draft this week on proposed language for a crypto market structure bill, were left to continue a discussion with the witnesses they’d invited.

So, two non-hearings progressed on Tuesday morning in separate rooms, illustrating the sharpening divide between the parties this week on how to move forward on overseeing the digital assets sector.

«A joint hearing has been very, very needed,» said a visibly frustrated Representative French Hill, the Republican chairman of the House Financial Services Committee. «I understand the ranking member has concerns, but by objecting to this hearing the ranking member is undermining the opportunity for these two committees to engage in a conversation of vital importance to the American people. That’s a loss for our committee, the House and the public at large.»

At what had technically become a «roundtable» in which the guests were participants, not witnesses, the Republican-driven discussion continued, with former Commodity Futures and Trading Commission Chairman Rostin Behnam arguing the agency needs more authority and funding to occupy a leading role in regulating crypto and Coinbase executive Greg Tusar called the market structure bill a «strong step» toward clarity for the industry.

In the Democrats’ hastily organized meeting, Waters opened with another blast at her opposition.»Since the Republican majority refused to do its job, I’m hosting today’s roundtable to shed light on these critical issues before it’s too late,» she said. And Democrats were ready to discuss their own piece of legislation: an effort to ban top government officials from involvement in crypto assets or businesses

Chastity Murphy, a former aide to Rep. Rashida Tlaib who worked on stablecoin legislation and now a visiting fellow at the University of Manchester, argued in the Democrats’ hearing that not prohibiting lawmakers from holding crypto assets or firms engaging in this kind of business is legalizing «holding public office for profit.» In Trump’s case, not prohibiting his crypto activities also means letting him determine which regulations could be helpful for his bottom line.

Also on Tuesday, Senator Chris Murphy, a Connecticut Democrat, introduced a bill to ban senior public officials from backing financial assets, including crypto.

Read More: Leading House Dem Will Block Crypto Market Structure Bill Hearing

Nikhilesh De contributed reporting.