US Court of Appeals Dismisses Coinbase and Kalshi's Motion to Halt State Enforcement

On November 4 that, according to a ruling by the U.S. Court of Appeals for the Second Circuit, the court dismissed applications from Coinbase Financial Markets and Kalshi seeking an injunction pending appeal. The related cases involve enforcement actions by Connecticut and New York against prediction markets.

The court is simultaneously hearing three appeals, involving Coinbase's case in Connecticut and Kalshi's cases in Connecticut and New York. The judge noted that the applicants failed to demonstrate the necessity of granting an injunction pending appeal; the ruling does not decide the substantive merits of the appeals, nor does it require the platforms to halt trading or close out existing positions.