According to CoinMeta, the U.S. Sixth Circuit of Appeals ruled that the sports-related event contracts provided by the prediction market provider Kalshi are not under the jurisdiction of the Federal Commodity Futures Trading Commission (CFTC), but are instead governed by state gambling regulations. This ruling was in response to two cases filed by Kalshi against regulatory authorities in Ohio and Tennessee. The court deemed that Kalshi had the right to file the lawsuits, but did not agree that their products constituted federally regulated swap contracts. This decision further intensifies the legal disputes between states and prediction market providers and may prompt the U.S. Supreme Court to get involved in the matter.