Connecticut hits Kalshi, Robinhood, Crypto.com over sports event contracts
NegativeCryptocurrency
- Connecticut's Department of Consumer Protection has issued cease-and-desist orders to Kalshi, Robinhood, and Crypto.com, classifying their sports event contracts as illegal online gambling despite claims of oversight by the CFTC. This regulatory action underscores the state's commitment to enforcing compliance in the online gambling sector.
- The enforcement against these companies could significantly impact their operations, as they are now required to halt activities that have been deemed illegal. This could affect their market positions and future growth prospects in the competitive cryptocurrency landscape.
- This development reflects ongoing tensions between regulatory bodies and cryptocurrency platforms, particularly in the realm of prediction markets and online gambling. As states increasingly scrutinize these activities, companies like Kalshi and Robinhood may face challenges in navigating the evolving regulatory environment while trying to innovate and attract users.
— via World Pulse Now AI Editorial System
