00:00 Speaker A

CFTC exercises emergency authority to ensure market stability. If you want to know how important prediction markets have become or at least how important the battle for power over prediction markets between the federal government and the states has become, just look at that. That is an official CFTC release invoking emergency authority to ensure market stability. So, a couple of weeks ago,

00:26 Speaker A

New York, uh went after Kalshi once again. Now, we know that many states have been suing prediction markets, but they were seeking a nationwide order blocking Kalshi’s event contracts and more than $35 billion in damages. New York obviously continues to argue alongside many states that Kalshi markets are illegal gambling products. But the CFTC here invoking emergency authority and ordering Kalshi to continue

00:56 Speaker A

operating under federal derivatives laws. So, the the federal government thinks these are derivatives contracts. The state governments tend to think that these are gambling contracts. What do you do here if you’re Kalshi? Right? You have the states like Minnesota and New York that I’ve told you about in the past, multiple other states telling you to cease operation, then you have the CFTC of one, Mike Selig, coming over the top rope

01:23 Speaker A

and telling you that you have to continue offering these services to customers in those states, even though those states are telling you that you cannot do it. So, this order keeps Kalshi operating in New York, but it certainly does not resolve the underlying lawsuit or the underlying turf battle that we’ve been had constantly. No, this is not a crypto story, but I think it is a huge story about how the states and the federal government

01:52 Speaker A

will behave when it comes to regulation, which informs what we may see in a world with no clarity act where the regulators are effectively in charge of what happens with crypto. I mean, this is the just the states versus the federal government at a level we haven’t seen in a long time. and it’s about new control of an entire new category of financial market.