Kalshi ruling puts crypto prediction market boom under pressure

A Washington court ordered Kalshi to stop offering most of its event contracts in the state, curtailing a regulated venue for crypto prediction markets. The decision arrives as prediction markets have become a major trading arena, with Pew Research reporting that cryptocurrency contracts made up about 20% of Polymarket’s trade volume between July 2024 and May 2026. The ruling underscores regulatory risk for crypto prediction markets and could reduce onshore liquidity or push activity to alternative DEXs or offshore CEXs.

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