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On January 9th, the Tennessee Sports Gaming Commission issued a cease and desist letter to Kalshi, Polymarket, and Crypto.com, requesting them to cease providing sports related prediction market products to Tennessee residents, void unsettled contracts, and return customer funds. The committee believes that the relevant products belong to sports betting, and the platform must comply with state licensing, taxation, age restrictions, and consumer protection requirements. Kalshi stated that its event contract is a financial instrument regulated by the Commodity Futures Trading Commission (CFTC) and is not subject to state sports betting regulations. User buying and selling contracts, with contract prices reflecting market implied probabilities; When the event occurs, the winning contract is settled at $1, otherwise the settlement is zero. Traditional gambling companies usually take on user bets and set odds to manage risks, while Kalshi involves transactions between users, with the platform responsible for matching and prices formed by both buyers and sellers. This dispute involves whether the sports prediction market should be subject to a unified federal regulatory system or whether each state should implement separate gambling licensing systems. （Bitcoin.com News）