Why Tennessee Targeted Kalshi, Polymarket, and Crypto.com

[etfs]

Tennessee regulators sent cease-and-desist letters to Kalshi, Polymarket, and Crypto.com, accusing them of offering unlicensed sports wagering products. The letters demanded the platforms stop offering sports event contracts, void existing contracts, and refund Tennessee users by Jan. 31.

The regulator also threatened fines of up to $25,000 per violation, arguing the platforms were operating without proper state authorization. This aggressive stance reflects a broader effort by states to assert control over emerging prediction markets that blur the line between derivatives trading and sports betting.

[cryptoenthusiast]

this feels less about consumer protection and more about turf wars