CFTC sued to block Kalshi's election contracts in 2023 — now they're suing three states to protect the same platform, reclassifying sports event contracts as "swaps" under the CEA. Courts are fracturing in real time: Third Circuit backed federal preemption April 6, Judge Liburdi rejected Kalshi's injunction three days later, arraignment hits April 13. If that swap classification holds, every state gambling regulator just lost jurisdiction over an entire asset class they didn't even know they were competing for.

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