The regulatory boundaries for prediction markets in the United States have been clearly defined: the Kalshi lawsuit has been confirmed to fall under federal jurisdiction.

CoinFeed reported on April 6 that, according to The Block, a panel of judges on the U.S. Third Circuit Court of Appeals ruled 2-1 that New Jersey's gaming regulator could not prevent Kalshi from offering prediction market contracts in the state. Last year, Kalshi sued New Jersey and other states over a cease and desist order prohibiting it from offering sports-related contracts. The prediction market argued that it is a federally regulated commodity exchange, belonging to the Designated Contract Market (DCM), and that the Commodity Exchange Act supersedes state jurisdiction. The court ruled that DCM trading, regulated by the Commodity Futures Trading Commission (CFTC), falls under exclusive federal jurisdiction, and New Jersey had no right to prevent the offering of such products.