Former U.S. Department of Justice Senior Official Submits Amicus Brief for Kalshi, Presenting Three Core Arguments

CoinFeed June 26 news, former U.S. Solicitor General Prelogar, on behalf of PredictAction, submitted an amicus brief to the Sixth Circuit Court of Appeals in support of Kalshi, opposing states' use of gambling regulatory frameworks to restrict prediction markets. The document emphasizes three points: First, prediction markets aggregate dispersed information through price mechanisms, differing from traditional gambling. Second, prediction market platforms match contract prices based on market supply and demand, unlike sports betting which profits by manipulating odds, and they bear a legal obligation to provide neutral access. Third, state gambling laws primarily revolve around 'restricting acts deemed immoral' and 'promoting local economies,' and are not designed for market functions such as price discovery, information aggregation, risk hedging, and manipulation prevention, thus not aligning with the CFTC's federal exclusive regulatory objectives for prediction markets.