A Swap By Any Other Name, Part II: The Sixth Circuit Appears Skeptical And A Soldier Tests The Limits Of The CEA
August 18, 2026 | The Insider: White Collar Defense and Securities Enforcement
The fight over who regulates prediction markets is intensifying. Two related questions are playing out in the courts: Who regulates prediction markets, and are event contracts “swaps” under the CEA? In Morvillo Abramowitz Grand Iason & Anello P.C. partner Brian Jacobs’ latest Forbes Insider article, he examines the Sixth Circuit’s recent oral arguments in disputes between Ohio and Tennessee on the one hand, and Kalshi on the other, where the panel appeared skeptical of Kalshi’s position that its sports event contracts qualify as “swaps” under the Commodity Exchange Act. He also discusses the recent motion to dismiss filed by former special forces soldier Gannon Ken Van Dyke, who is charged with using classified information to profit from Polymarket wagers. Together, these cases raise significant questions about the scope of the CEA and underscore the need for Supreme Court review.
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