Kalshi just filed suit in federal court against the states of Nevada and New Jersey. As promised, Kalshi will keep fighting for the right of prediction markets to thrive.
Over the last decade, the concept of objective truth has been dangerously eroded by aggressive politicization, rampant misinformation, and biased journalism. Without the ability to agree on some of the basis and without truthā¦ we are blindā¦ a society evolving without direction, endlessly debating itself into oblivion.
Prediction markets have proven themselves to be the antidote. They mobilize the most elegant and effective properties of free financial markets towards the pursuit of unbiased truth. They are the quintessential truth machines. With trust in traditional institutions at an all-time low, people are turning to prediction markets at an astronomical pace. The growth of the ecosystem in the last year is a testament to how important they have become to the American people.
We need prediction marketsā¦ now, more than ever.
While they are not our regulators, both states have issued cease and desist orders that fundamentally misunderstand prediction markets and undermine the foundation of U.S. financial markets, which are regulated by the federal government. We have made every effort to engage proactively with both Nevada and New Jersey and try to educate them about prediction markets, how they are regulated, and how critical they areā¦ but our words fell on deaf ears.
I canāt speak to why they are taking this action, but prediction markets have proven their use, so it is a shame that these authorities are still trying to censor them.
We are left with no choice: sue.