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Economist warns Kalshi index contracts may challenge brokerages

Regulation

In an analysis of Kalshi’s legal challenge, economist Rajiv Sethi warned that index-linked perpetual contracts could eventually draw retail and retirement savings away from traditional brokerages. The Capital Markets Alliance Association is challenging the CFTC’s authorisation of single-stock perpetuals on Kalshi, Coinbase Derivatives and Bitnomial, while the case does not cover broad stock-index contracts.

The dispute could affect how prediction-market products compete with brokerages for retail investment flows.

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Regulation

Louisiana attorney general obtains 10-day order against prediction market operators

Louisiana Attorney General Liz Murrill said she filed suit against 10 prediction market companies and obtained a temporary restraining order. The order bars sports, election and awards contracts, wagering and advertising, and requires the companies to block Louisiana users; Murrill is also seeking an injunction. The Coalition for Prediction Markets and Kalshi challenged the state’s action.

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