Connecticut orders Robinhood, Crypto.com, Kalshi to stop prediction markets

Overview

Connecticut has taken regulatory action against Robinhood, Crypto.com, and Kalshi by issuing cease and desist letters. The state claims that the event contracts offered by these platforms qualify as unlicensed sports betting.

What Happened

The cease and desist letters were sent to Robinhood, Crypto.com, and Kalshi by Connecticut authorities. The state’s assertion is that the event contracts available on these platforms are not compliant with existing regulations and are effectively operating as unauthorized sports betting. This intervention highlights the state’s stance on ensuring that gambling activities are regulated and licensed appropriately.

Why It Matters

The actions taken by Connecticut underscore the growing scrutiny on cryptocurrency and prediction market platforms. By classifying the event contracts as unlicensed sports betting, the state is emphasizing the need for compliance with gambling laws. This move could have broader implications for how similar platforms operate in other jurisdictions and may lead to increased regulatory oversight in the crypto space.

Impact on the crypto market

• The cease and desist letters could impact the operations of Robinhood, Crypto.com, and Kalshi in Connecticut.
• Other states may follow Connecticut’s lead, leading to increased regulatory scrutiny on prediction markets.
• The situation may prompt platforms to reevaluate their compliance strategies with respect to gambling laws.
• Investors and users of these platforms may face uncertainties regarding the availability of services.
• The regulatory actions could influence public perception and trust in cryptocurrency and prediction markets.

Updated: 12/4/2025, 4:33:28 AM