Biden's former solicitor general Prelogar joins prediction market state defense
A coalition of US prediction market providers including Kalshi Inc. and Crypto.com has retained Elizabeth Prelogar, the former US solicitor general under President Biden, to represent them in a state-level dispute. Prelogar filed an amicus brief on behalf of PredictAction in Kalshi's Sixth Circuit appeal on Wednesday. The engagement signals the coalition is mounting a high-level legal defense against state regulatory challenges as the industry faces pushback from state authorities. The filing was characterized as a 'masterpiece' in one account.
Prelogar's amicus brief adds top-tier appellate credibility to Kalshi's Sixth Circuit argument that CFTC registration preempts state gambling laws. Any ruling affirming that preemption would nullify enforcement actions in states like Kentucky and New Mexico.
The CFTC and prediction market platforms now fight on dual federal and state tracks, with Kalshi and Polymarket facing preemption cases across multiple states including Kentucky, New Mexico, and Minnesota.