A compromise between the warring parties is unlikely in the increasingly bitter regulator-versus-states battle for control of prediction markets, say experts.
The Commodity Futures Trading Commission (CFTC) has filed lawsuits against nine states whose attorneys general have attempted to block or restrict platforms such as Kalshi and Polymarket from operating in their jurisdictions. The ongoing conflict highlights the challenges faced by prediction market operators in navigating state regulations and federal oversight.
Legal experts caution that a resolution between the CFTC and the states seems remote, indicating a prolonged legal tussle that could have significant implications for the prediction market industry as a whole.
