U.S. District Judge Robert Shelby ruled that the Commodity Exchange Act does not prevent states from enforcing gambling prohibitions

How governments worldwide set rules for digital assets through legislation, agency rulemaking, licensing regimes and court fights.

Federal and state court systems of the United States, judicial appointments, constitutional interpretation and the rulings that decide policy when the other branches deadlock. Life tenure for federal judges makes each confirmation a durable political stake rather than a procedural step.

A Reuters/Ipsos survey released October 12, 2026, found bipartisan opposition to using prediction markets, including Kalshi and Polymarket, to wager on United States election results. Federal and state regulators remain divided over whether these contracts are financial products or gambling.