Polymarket US argues under the Dormant Commerce Clause that Ohio's licensing rules unconstitutionally favor in-state physical footprints and restrict market operations to Ohio residents

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On September 25, 2026, the U.S. Court of Appeals for the Sixth Circuit ruled in KalshiEx LLC v. Schuler that sports event contracts are not swaps under federal law and that the Commodity Exchange Act does not preempt Ohio sports gaming laws

On October 9, 2026, the CFTC issued an interim final rule excluding casino-style gambling from the federal definition of swap while publishing a proposed rule explicitly incorporating event contracts

The Ohio Casino Control Commission warned prediction market operators that non-compliance could result in civil financial penalties equaling Ohio-generated revenue, as well as state criminal penalties for unlicensed bookmaking

Polymarket US seeks declaratory relief stating Ohio's gambling laws are unconstitutional and preempted, alongside preliminary and permanent injunctions against Ohio officials

Polymarket US, operating through CFTC-registered QCX LLC, filed a federal lawsuit in the U.S. District Court for the Southern District of Ohio on October 16, 2026, against Interim Attorney General Andy Wilson and the Ohio Casino Control Commission

On October 2, 2026, the Ohio Casino Control Commission sent cease-and-desist letters to 10 prediction market operators demanding they halt unlicensed sports event contracts and provide written compliance confirmation by October 16, 2026

Polymarket US argues in its complaint that the CFTC's October 9, 2026 regulatory actions—an interim final rule and a proposed rule—altered the legal landscape established by the Sixth Circuit's September 25 ruling against Kalshi

Polymarket US asserts that the Commodity Exchange Act grants the CFTC exclusive regulatory jurisdiction over event contracts listed on federally designated exchanges

As of October 21, 2026, an Ohio Casino Control Commission spokesperson stated that one notified prediction market operator confirmed compliance while two operators filed lawsuits against the state

Prediction market operators rely on single CFTC registration to maintain nationwide liquidity, but risk facing individual state licensing regimes and local legal costs if states successfully enforce local gambling laws

The U.S. Court of Appeals for the Third Circuit ruled in favor of Kalshi against New Jersey on federal preemption, prompting New Jersey to petition the U.S. Supreme Court for review

If Ohio successfully enforces its cease-and-desist orders, state gaming regulators nationwide could replicate the Sixth Circuit's legal template to target prediction market platforms

The Financial Conduct Authority opened applications for a new UK cryptocurrency regulatory regime on September 30, 2026, ahead of rules coming into force on October 25, 2027.

The UK's incoming cryptocurrency regulatory framework does not require retail banks to process payments to cryptocurrency exchanges or grant business bank accounts to authorized firms.

Ripple filed a 20-page comment letter on October 20, 2026 supporting the U.S. Securities and Exchange Commission's proposed Regulation Crypto Assets

The SEC's proposed Regulation Crypto Assets from August 2026 includes registration exemptions allowing crypto projects to raise $5 million over four years or $75 million annually

In its October 20, 2026 comment letter, Ripple requested clarification from the SEC regarding secondary-market transactions under proposed Rule 500

Ripple Chief Legal Officer Stuart Alderoty stated on October 20, 2026 that the SEC possesses clear legal authority to adopt the proposed Regulation Crypto Assets unveiled in August 2026

Ripple supported the SEC's proposed Regulation Crypto Assets approach allowing an investment contract to end once an issuer completes or permanently stops promised essential managerial activities

Ripple asked the SEC to avoid introducing additional legal tests based on whether a cryptocurrency is associated with a company or an independent network