🚨 #PredictionMarketsCFTCBacking – CFTC Throws Weight Behind Prediction Platforms! ⚖️📈
Big regulatory win brewing: CFTC Chair Michael Selig just filed an amicus brief backing Crypto.com in its 9th Circuit appeal vs. Nevada regulators. Key message: Prediction markets (event contracts on elections, sports, news) fall under federal CFTC jurisdiction — NOT state gambling laws.
Highlights:
• CFTC claims “exclusive jurisdiction” for decades-old oversight of these as derivatives.
• Platforms like Kalshi, Polymarket, Coinbase, Crypto.com face ~50 state lawsuits alleging gambling.
• Selig: “No more sitting idly by while states undermine federal authority.” Plans new clear rules for event contracts.
• Trump-era shift: Withdrew prior ban proposals on sports/political contracts; focusing on innovation + integrity.
• Market impact: Could unlock nationwide access (even in gambling-banned states), boost volumes, reduce FUD for crypto-linked platforms.
Pros: Better hedging, info aggregation, checks on media narratives.
Cons: Critics (some Dem senators, states) warn of gambling loopholes, insider risks.
Crypto angle: Prediction markets blending with DeFi/crypto (Polymarket’s growth, integrations) — clearer federal rules = more institutional play? Or more state fights ahead?
Your take: Bullish for prediction markets? Risk of overreach? Share thoughts, charts, or bets below! 🛡️💬