Prediction Market Platforms See Record Volumes Amid Regulatory Battles

[mendez]

Polymarket and Kalshi, two leading prediction market platforms, have reported record trading volumes in January, following regulatory clarity from the Commodity Futures Trading Commission (CFTC).

Kalshi recorded $2.15 billion in weekly volume for Jan. 12, while Polymarket saw nearly $825 million traded—the platform’s best-ever week. Earlier this month, the CFTC issued a no-action letter to crypto derivatives exchange Bitnomial, signaling support for prediction markets.

Despite federal backing, some US states—including Nevada, New Jersey, Tennessee, and Massachusetts—have challenged the platforms in court, claiming sports event contracts amount to unlicensed betting. Platforms like Kalshi maintain that the CFTC holds exclusive jurisdiction over prediction markets.