Judicial and Legislative Headwinds on Crypto Policy
Kalshi, a prediction market platform, has suffered a legal setback after a U.S. appeals court ruling reaffirmed state powers to regulate event contracts. The decision creates conflicting precedent across federal courts, suggesting the U.S. Supreme Court may be required to settle jurisdictional questions over prediction markets.
The Clarity Act, anticipated crypto legislation designed to establish federal regulatory standards for banks and digital asset custody, has been delayed into September. According to commentary from Matter Labs' Vassilis Tziokas, the absence of settled federal rules is effectively rewarding existing centralized infrastructure operators while regulatory gaps persist.
California's state legislature has passed a bill seeking to ban memecoin issuance by federal public officials, citing conflicts of interest and potential "pay-to-play arrangements." The measure targets listings available to California residents, reflecting state-level concern over official involvement in token launches.
