A new regulatory battle is taking shape around prediction markets in the U.S., and it could have big implications for both crypto and traditional finance.
#CFTC Chair Mike Selig has warned that the federal derivatives regulator—not individual states—has authority over event-contract platforms like #Polymarket and Kalshi. Several states disagree, especially when it comes to sports-related contracts, and legal fights are already underway.
The dispute is about more than just prediction markets. It touches on a broader question: should these platforms be treated as financial derivatives under federal oversight, or as a form of online gambling regulated by states?
With major players moving into the sector and politically connected firms exploring the space, the outcome of these court battles could shape the future of prediction markets in the U.S. for years to come.