[Tennessee Regulators Issue Cease-and-Desist Letters to Kalshi and Two Other Platforms, Demanding Halt of Sports Prediction Markets] Odaily Planet Daily News: On January 9, the Tennessee Sports Wagering Council issued cease-and-desist letters to prediction market platforms Kalshi, Polymarket, and (Crypto.com), requiring them to stop offering sports-related prediction market products to Tennessee residents, void unsettled contracts, and return customer funds. The council believes that these products fall under the category of sports betting, and platforms must comply with state licensing, taxation, age restrictions, and consumer protection requirements. Kalshi stated that its event contracts are financial instruments regulated by the Commodity Futures Trading Commission (CFTC) and are not subject to state sports betting regulations. Users buy and sell contracts, with contract prices reflecting the market's implied probability; when an event occurs, winning contracts are settled at $1, otherwise, they are settled at zero. Traditional sportsbooks typically accept user bets and set odds to manage risk, whereas Kalshi facilitates trading between users, with the platform acting as a matchmaker and prices determined by buyers and sellers. This dispute raises the question of whether sports prediction markets should be subject to a unified federal regulatory framework or individual state gambling licensing systems. ((Bitcoin.com) News)