According to @jchervinsky, many of the highest-demand crypto products are or may be derivatives regulated by the CFTC, but most cannot comply with the Commodity Exchange Act because it was not written for DeFi or onchain finance (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, harsh penalties under current law lead most crypto derivatives products to geofence the United States (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, the CFTC can fix this by adopting new rules that allow DeFi and onchain derivatives to compete in the free market, asserting there is no legitimate policy reason to ban crypto-powered derivatives in the United States (source: Jake Chervinsky on X, Nov 21, 2025). According to @jchervinsky, these products address key CFTC risk concerns with better technology than TradFi, U.S. taxpayers show strong demand for access, and outcomes depend on policy choices by CFTC leadership, with him expressing hope that Mike Selig will take the seat soon (source: Jake Chervinsky on X, Nov 21, 2025).

According to @iampaulgrewal, Judge Corley determined that the court lacks jurisdiction to decide whether Kalshi’s event contracts violate the Commodity Exchange Act and that such determinations belong to the CFTC, which has exclusive jurisdiction over its contract markets. Source: @iampaulgrewal. For traders, this channels compliance and listing risk for Kalshi-style event contracts through CFTC processes and decisions rather than federal court, making CFTC rulemaking, guidance, and enforcement the primary drivers to monitor. Source: @iampaulgrewal.