Tennessee's Sports Wagering Council has taken action against multiple prediction market platforms, issuing cease-and-desist orders to halt sports event contract offerings within state lines. The regulatory move impacts Kalshi, Polymarket, and Crypto.com, among others, requiring them to discontinue services, cancel all active positions held by Tennessee residents, and return customer funds by January 31, 2026.

The orders cite unlicensed operation as the primary violation. Each platform must comply with specific operational requirements outlined in official correspondence. This marks a significant regulatory escalation in how U.S. states are approaching decentralized prediction markets and crypto-powered betting platforms.

The January 2026 deadline gives affected users roughly one year to withdraw holdings and settle positions. This development reflects broader tension between emerging crypto applications and traditional state-level financial regulation frameworks. Similar enforcement actions have emerged across multiple jurisdictions as prediction market platforms expand, signaling that regulators increasingly view these services as requiring formal licensing and oversight.