US Regulators Clash Over Authority as Prediction Markets Expand

[lingriiddd]

As platforms like Polymarket grow in popularity, US regulators are debating who holds authority over the sector. Michael Selig, Chair of the Commodity Futures Trading Commission (CFTC), recently asserted that the federal agency has exclusive jurisdiction over prediction markets, classifying them as derivatives markets rather than gambling platforms.

Several states have filed lawsuits against prediction platforms — including Kalshi — alleging illegal sports betting activity. Selig has warned that the CFTC will defend its authority in court, even filing amicus briefs to reinforce federal oversight. Meanwhile, Polymarket is challenging enforcement actions at the state level, arguing that regulation of prediction markets falls solely under federal jurisdiction.

[tradelikepro]

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