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 shows no signs of abating as both sides remain steadfast in their positions.
Legal experts caution that a resolution seems far off, with the battle intensifying as the CFTC and state authorities dig in their heels over the regulation of prediction markets.
