Kalshi has not yet filed its response to New Jersey’s September 2 petition asking the U.S. Supreme Court to decide whether states can regulate sports betting offered by exchanges registered with the CFTC (U.S. derivatives regulator). The Third and Ninth U.S. Circuit Courts of Appeals have reached conflicting positions on the issue. Kalshi CEO Tarek Mansour said the CFTC could issue new rules within weeks or months to clarify Rule 40.11. Kalshi litigation lead Jovy Dedaj and spokesperson Dani Lever said the Ninth Circuit’s ruling was largely based on regulatory provisions that are being rewritten. In June, the CFTC proposed replacing a blanket ban on betting contracts with case-by-case public-interest reviews. Sports contracts would be classified as betting under the proposal, while most game outcomes and special betting contracts could remain available. After Kalshi files its response, New Jersey will have 10 days to reply, after which the Supreme Court typically considers the matter at a conference about a month later.