Kalshi Sues Illinois Over New Law, Says State-Level Prediction Market Regulation Conflicts with Federal Law

CoinFeed June 25 news, according to Cryptopolitan, prediction market platform Kalshi has filed a lawsuit in the U.S. District Court for the Northern District of Illinois, challenging the state's newly signed SB3019 bill. The bill requires prediction market platforms to obtain a state-level license, imposes a 0.2% tax on digital asset transactions involving Illinois customers, and will take effect on July 1. Kalshi argues that federal law gives the CFTC exclusive jurisdiction over exchange-traded derivatives, and additional state-level regulatory requirements conflict with the Commodity Exchange Act. If Kalshi withdraws sports event contracts from Illinois to comply with state law, it would directly violate the CFTC's uniformity requirement; if it continues to operate without a license, it would violate state law, and implementing geoblocking technology would be costly.