# Washington and Crypto.com Pause Litigation, New Bill Targets Prediction Markets Legal and regulatory developments dominate prediction markets. - **Source:** [ReadWrite](https://brifing.si/source/7a996b61-bc09-4e57-8483-78f2ad9dd914) - **Published:** 2026-08-19 - **Topic:** [Finance](https://brifing.si/c/finance) - **Original article:** - **On Brifing:** https://brifing.si/s/1ac5713f-d991-4e5f-9e18-fa1a8737ec98 ## Washington and Crypto.com Pause Litigation Washington and Crypto.com agreed to pause litigation pending a Ninth Circuit ruling. This decision highlights legal uncertainties in prediction markets. Connecticut is urging the Second Circuit to deny Kalshi's request for interim relief. Additionally, a new federal bill aims to ban prediction markets on wildfires. ## New Developments in Prediction Markets Prediction market executives are skipping today's White House meeting. Questions arise after pages related to Kalshi's recently announced Catalist Sports partnership disappeared. South Korea joins jurisdictions grappling with whether prediction markets are financial products or gambling. ## Kalshi's Big Ambitions Kalshi aims to go beyond prediction markets and become part of Wall Street's pricing and risk management infrastructure. The company filed with the CFTC to list equity index perpetual futures. This allows traders to maintain long or short positions without continuously rolling contracts. ## Legal Questions and Evaluations Vanderbilt Law Professor Yesha Yadav called Kalshi's $40 billion valuation 'staggering.' Yadav highlighted explosive prediction market volumes while warning that serious legal questions still loom over the industry. These include state battles that could ultimately reach the Supreme Court. ## CFTC's Decision and Implications The CFTC ordered Kalshi to continue operations despite New York's objections. Yadav described the use of rarely deployed emergency powers as 'arguably extraordinary.' This decision could have significant implications for the future of prediction markets. ## Technical Developments and Connections Trading Technologies announced it would add connectivity to Crypto.com's CFTC-regulated exchange and clearinghouse, OG.com. This will enable banks, hedge funds, and professional traders to access OG.com's prediction markets through their existing trading workflows. ## Kalshi's Product Strategy Kalshi plans to expand beyond prediction markets by offering equity index perpetual futures. The company is also adding commodities like copper to its menu. Single-stock perpetuals are not on the agenda for now, but this is expected to change in the near future. ## The Future of Prediction Markets Prediction markets are emerging as a new dimension of financial markets. Companies like Kalshi are pursuing innovation and expansion in this area. However, legal and regulatory hurdles will play a critical role in shaping the industry's future. As Wall Street's new neighbor, prediction markets are poised to carve out a significant place in the financial world. ## Sources covering this story - https://readwrite.com/washington-crypto-com-pause-litigation-federal-bill-wildfire-prediction-market-news-live/ — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._