GM. Kalshi won a major appeals court victory today after a 2-1 ruling blocked New Jersey from banning its sports prediction markets, affirming federal CFTC oversight.

Meanwhile, Polymarket announced a V2 trading engine overhaul, Argentina investigated President Milei over a $LIBRA scandal, and Chaos Labs exited the Aave ecosystem.

Here are the details on legal wins, platform migrations, and governance exits. 👇

Kalshi Secures Massive Appeals Court Win Over New Jersey

A federal appeals court in Philadelphia handed Kalshi a decisive victory on Monday by ruling its sports prediction markets fall under CFTC oversight. This 2-1 judicial panel successfully overturned a previous cease-and-desist order from New Jersey regulators.

Judges rejected state arguments that Kalshi's events constitute illegal gambling, instead classifying them as federally registered contracts. Chief Judge Michael Chagares authored the prevailing opinion to cement federal supremacy over fragmented state level wagering prohibitions across the nation.

This jurisdictional triumph strengthens the platform’s position as similar bans currently persist across Nevada and Arizona during a heated national dispute. The Trump administration aggressively championed these free markets to shield innovative platforms from local gaming authorities.

Legal experts anticipate a final Supreme Court showdown after various circuits produced conflicting rulings on prediction market legitimacy this spring. CEO Tarek Mansour praised the verdict for rewarding transparency while empowering millions of retail traders across America.

Polymarket Overhauls Trading Engine And Infrastructure

The largest onchain prediction market Polymarket announced a massive overhaul of its core trading engine and smart contract infrastructure on Monday. This major migration to V2 will introduce more efficient order matching plus reduced gas consumption for millions of global retail participants. Developers must update their current software kits immediately.

The New York based startup also launched a native stablecoin called Polymarket USD to replace its previous bridged version of digital assets. This 1:1 backed collateral token allows for streamlined transactions within the Polymarket ecosystem while improving overall user experience for traders. Leadership intends to clear all existing order books soon.

Argentine Investigation Uncovers Milei Calls Regarding LIBRA

Argentinian federal investigators recently uncovered forensic phone logs linking President Javier Milei to a prominent crypto lobbyist behind the collapsed LIBRA token. These records show several calls occurred on the specific night the leader promoted the project to followers online. Authorities now officially consider him a person of interest.

The controversial digital asset achieved a $4 billion valuation before crashing by over 90% and leaving retail investors with massive financial losses. This ongoing probe explores whether the president received a $5 million payment agreement for his social media endorsements. Milei continues to deny any wrongdoing regarding the entire meme coin scandal.

Chaos Labs Exits Aave Ecosystem Over V4

Prominent risk manager Chaos Labs announced its departure from the Aave ecosystem Monday following a major disagreement over the upcoming V4 upgrade strategy. The firm managed the protocol for 2 years while helping it grow to $26 billion without any material bad debt. Leadership cited a fundamental deep misalignment.

Chaos Labs argued that the new architecture creates unsustainable operational complexity plus economic burdens that the current budget cannot properly support now. This exit follows similar departures from other core contributor groups like BGD Labs and the Aave Chan Initiative. Stani Kulechov plans to utilize alternate risk management providers.

Data of the day

Onchain perpetual futures trading volumes declined for 5 consecutive months as speculative demand for leveraged positioning cooled across decentralized exchange platforms in March. Total monthly activity fell from $1.36 trillion last October to roughly $699 billion recently. This steady slowdown highlights a broader shift in global digital asset investor behavior.

Daily trading activity also dropped below the $10 billion threshold for the first time since last September according to recent DefiLlama data. Hyperliquid continues to lead the sector with a 34% market share despite the general contraction in onchain liquidity. Blockchains are still racing to host these competitive trading venues.

More breaking news

• Michael Saylor's Strategy reported a massive $14.46 billion unrealized loss on its bitcoin holdings while continuing to accumulate even more tokens recently.

• Jamie Dimon warned shareholders that blockchain based competitors are reshaping finance as JPMorgan scales its own Kinexys network for near instant fund transfers.

• BitMine Immersion Technologies boosted its treasury to 4.8 million ETH after purchasing $152 million worth of the asset during the past week.

• China's financial regulators urged domestic banks to incorporate blockchain technology to improve data transparency and expand lending services for smaller honest enterprises.

• Chinese authorities ordered Apple to remove Jack Dorsey's decentralized messaging app Bitchat because the peer to peer tool bypassed national surveillance infrastructure.

• A solo bitcoin miner defied 1-in-28,000 odds to secure a $210,000 block reward despite controlling an incredibly small share of total hashrate.

• Security researchers revealed that North Korean hackers have spent 7 years infiltrating decentralized finance projects using sophisticated fake identities to steal billions.

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