As of February 2026, the landscape for prediction markets has changed in a big way. The Commodity Futures Trading Commission (CFTC), under Chairman Michael Selig, has officially shifted its stance — and this move could reshape the entire industry.
Earlier, the CFTC was pushing back against election betting and certain event-based contracts. But now? The tone is completely different.
The agency is arguing that prediction markets fall under exclusive federal jurisdiction. That means individual states can’t simply ban them using gambling laws. On top of that, the CFTC has withdrawn its previous proposal to ban political and sports event contracts.
This is a huge signal.
🔹 Platform Updates
Kalshi – Fully operational and federally protected after winning its court case. The platform is now running with stronger legal backing.
Polymarket – Has officially returned to the U.S. market as a regulated exchange.
🔥 What This Really Means
Prediction markets are no longer being treated like traditional gambling platforms. Instead, they’re being recognized as regulated financial products.
That’s a massive shift in narrative.
We’re witnessing prediction markets move from legal uncertainty to structured financial legitimacy. If this momentum continues, 2026 could be the year this sector goes fully mainstream.
Big changes are happening — and smart observers are paying attention. 👀