Comment Re:What About CFTC Ruling (Score 1) 31
It's not a flawless argument, however. At it's broadest, a swap could basically refer to any financial transaction whatsoever. Courts generally frown on such promiscuous definitions, however, and the CFTC and SEC have both issued several clarifications on how they interpret that - For example, they don't consider insurance as a swap, even though by any reasonable interpretation insurance is absolutely a form of swap, and the way swaps are used in practice (prior to this gambling nonsense) is almost indistinguishable from a type of insurance.
That said, Minnesota and New York have a serious uphill battle ahead. Feds just love throwing around the "supremacy" clause, and rarely care whether or not their rules make the least bit of sense. NY does have a pocket ace, though, in that both Kalshi and Polymarket are both based in NYC; they may not be able to force the CFTC to play nice, but they can make life hell for both companies if they so choose.