[ALERT] Polymarket vs. Regulators: A Key Case for On-Chain Markets
Polymarket has filed a lawsuit against the state of Massachusetts, arguing that individual states do not have the authority to regulate prediction markets. The company maintains that only the CFTC at the federal level can oversee event-based contracts.
This case is important for market structure. Some competitors, such as Kalshi, currently operate under state-based restrictions like geofencing. Polymarket is seeking a unified federal approach to avoid fragmented regulation that can reduce liquidity and limit market efficiency.
The Takeaway: If the court sides with Polymarket, it could reinforce the view that on-chain derivatives are financial instruments rather than gambling products. That would clarify the CFTC’s role as the primary regulator and may support more stable, long-term development for assets like $BTC .