Tennessee Ban Controversy: Platforms like Kalshi, Polymarket Suspend Sports Event Contract Services

【Chain Wen】The United States has once again encountered a new wave of regulatory turmoil. Recently, regulatory authorities in Tennessee issued bans to several well-known crypto platforms—Kalshi, Polymarket, and Crypto.com—requiring them to cease offering sports event contracts to users in the state.

What is the reason? These platforms did not obtain the necessary licenses to operate in the state. According to Tennessee’s Sports Gaming Law, any business involved in accepting sports betting must apply for a license from the state government, which is a mandatory requirement.

However, the backgrounds of these companies are not simple. They have already registered with the U.S. Commodity Futures Trading Commission (CFTC) as designated contract markets, allowing users to buy and sell contracts directly on the platform based on sports event outcomes. The problem lies here—CFTC registration and state licenses are two different things. One is federal recognition, and the other is a state-level requirement. The collision of these two systems ultimately forces compliance with local regulations.

This also reflects the complex situation faced by the crypto industry in the U.S.: intertwined jurisdictions and sharply increased compliance costs.