Connecticut Regulators Crack Down on Crypto-Linked Event Betting

Connecticut's financial watchdog has drawn a regulatory line in the sand, ordering Robinhood, Kalshi, and Crypto.com to cease offering sports event contracts to state residents. The Department of Consumer Protection asserts these products constitute unlicensed gambling rather than legitimate financial instruments.

The enforcement action highlights growing tension between state regulators and platforms offering crypto-adjacent speculative products. While the companies maintain their markets are CFTC-regulated derivatives, Connecticut officials see them as thinly veiled sports betting operations requiring local licensing.

This move comes as crypto platforms increasingly blur traditional boundaries between investing, gaming, and speculation. The order requires immediate cessation of all marketing and mandates that Connecticut users be allowed to withdraw funds from these products.