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Judge Who Ruled XRP Not a Security in Ripple Case Hands Kalshi 'A Major, Major Loss' in New York
U.S. District Judge Analisa Torres denied Kalshi's request for a preliminary injunction, ruling that New York's gambling regulations are not overridden by federal commodities law.
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What happened
U.S. District Judge Analisa Torres denied Kalshi’s request for a preliminary injunction, ruling that New York’s gambling regulations are not overridden by federal commodities law.
Confirmed
Global impact / market context
The ruling shows that state gambling laws can remain enforceable even when federal commodity rules exist, meaning companies like Kalshi must comply with both sets of rules, which could increase legal costs and affect market entry plans.
Confirmed
The decision follows the high‑profile Ripple case where a judge ruled that XRP is not a security, highlighting ongoing legal battles over how U.S. securities and commodities laws apply to digital assets.
Confirmed
What to watch
- Whether Kalshi will appeal the ruling, which could create further court decisions clarifying the relationship between state gambling rules and federal commodity regulations. Analyst inference
- How other prediction‑market platforms interpret the decision, potentially influencing their strategies for operating in states with similar gambling statutes. Analyst inference
- If regulators adjust or propose new rules to address the overlap between gambling and commodity trading, affecting licensing requirements for digital‑asset exchanges. Analyst inference
Affected assets
- XRP — XRP