According to CoinMeta, on January 9th, the Tennessee Sports Gambling Commission issued cease-and-desist letters to Kalshi, Polymarket, and Crypto.com, requiring them to stop providing sports-related prediction market products to residents of Tennessee, cancel unsettled contracts, and return customer funds. The commission considers such products to be sports gambling, and the platforms are required to comply with state licensing, taxation, age restrictions, and consumer protection regulations. Kalshi stated that its event contracts are financial instruments regulated by the Commodity Futures Trading Commission (CFTC) and are not subject to the sports gambling regulations of individual states. This dispute raises the question of whether a unified federal regulatory system should apply to sports prediction markets or whether each state should implement its own gambling licensing regulations.