A Swap By Any Other Name, Part II: The Sixth Circuit Appears Skeptical And A Soldier Tests The Limits Of The CEA The debate over prediction markets has been simmering for years, but recent developments suggest a significant shift in the regulatory landscape may be underway.
In the courts, the Sixth Circuit's skeptical questioning of Kalshi's contracts as swaps under the Commodity Exchange Act (CEA) has set off alarm bells among industry players and observers.
Meanwhile, a former special forces soldier's motion to dismiss his indictment for alleged insider trading on Polymarket raises fundamental questions about the nature of these markets.