According to CoinMeta, Kalshi CEO Tarek Mansour stated that state-led regulation will force the US predictive markets to relocate out of Arlington, Virginia. He pointed out that the current legal battles will not determine whether this rapidly growing industry will be regulated by state or federal agencies, but rather whether it will be regulated within the United States or forced to move overseas. Mansour also refuted the argument that sports betting has no economic impact, stating that "the claim that sports betting has no economic impact is absurd." Currently, more and more states are challenging Kalshi and other predictive market companies in court, accusing them of engaging in illegal sports betting, which falls under the jurisdiction of state gambling regulatory agencies. Kalshi and its exchange's federal regulator, the Commodity Futures Trading Commission (CFTC), argue that federal agencies are the only appropriate regulators for predictive markets.