Connecticut has taken action against unlicensed sports betting platforms, targeting companies like Robinhood and Kalshi for allegedly operating without proper authorization. This move highlights ongoing conflicts between state gaming laws and federal regulations surrounding derivatives markets. 🌎 The state’s cease-and-desist orders assert that these platforms are engaging in illegal gambling due to their operation with sports event contracts, often falling under the purview of the CFTC. 🏛️ While Robinhood CEO Vlad Tenev argues his company operates within federal jurisdiction, Connecticut Commissioner Bryan Cafferelli contends that prediction markets are inherently illegal unless properly licensed. ⚖️ This action has sparked uncertainty in investor sentiment and broader discussions about regulatory control over prediction markets and sports derivatives. 💰 The political and business landscape is facing a test as these companies navigate the complex regulatory environment.