Tennessee Orders Crypto Platforms to Halt Sports Contracts

Tennessee’s Sports Wagering Council has issued cease-and-desist orders to Kalshi, Polymarket, and Crypto.com, mandating them to stop sports betting activities and refund users by January 31, 2026.

This regulatory move highlights the ongoing legal tension between state and federally registered prediction markets, impacting potential market operations and user accessibility.

Tennessee Halts Unlicensed Crypto Sports Betting Operations

Kalshi, Polymarket, and Crypto.com have been ordered to halt operations in Tennessee by January 31, 2026, due to unlicensed sports event contracts. The SWC asserts these contracts violate state gambling laws.

Tennessee’s move signifies increased state regulation on crypto platforms. Entities must void existing contracts and issue refunds for Tennessee-based users, highlighting a firm stance on compliance.

“Kalshi, Polymarket, and Crypto.com do not hold a Tennessee sports wagering license and do not pay the state’s wagering privilege tax, and are therefore operating illegally under the Sports Gaming Act.” Source

Market Impact and Regulatory Scrutiny Increase

Did you know? In previous years, states like Arizona and New York have issued similar cease-and-desist orders against prediction markets, indicating a growing regulatory scrutiny across the U.S.

CoinMarketCap reports Cronos (CRO) is trading at $0.10, with a market cap of $3.88 billion and 0.13% market dominance. Despite a 0.39% increase over 24 hours, the 90-day price dropped significantly by 41.43%. Current trading volumes are $9.06 million, down 32.63% in the last 24 hours.

Insights from the Coincu research team suggest that the Tennessee action could potentially pressure crypto platforms to enhance compliance measures across the U.S., which may influence future regulatory standards in financial and betting markets.