DOJ and CFTC Assert Federal Jurisdiction Over Prediction Markets
The U.S. Justice Department and the Commodity Futures Trading Commission (CFTC) have launched a forceful defense of prediction markets, filing joint lawsuits against Illinois, Arizona, and Connecticut. The Trump administration's legal action aims to free prediction platforms from state-level gambling regulations. According to the filings, the CFTC claims the Commodity Exchange Act grants it "exclusive jurisdiction" over event contracts, a market the agency notes it first officially recognized in 1992.
Amid these high-stakes regulatory battles, prediction market Kalshi is bolstering its political firepower. On Friday, the platform announced the hiring of former Democratic strategist Stephanie Cutter as a policy adviser. Cutter, a veteran of Democratic lawmakers’ campaigns, joins the firm to help navigate ongoing state and federal legal hurdles.
Polymarket Expands into Traditional Sports and Equities
While regulators battle in court, Polymarket is rapidly expanding its contract offerings across multiple sectors. The decentralized platform has secured a multi-year partnership with European soccer league LaLiga. The deal, which covers the US and Canada, marks Polymarket's continued expansion into traditional sports betting markets.
Simultaneously, Polymarket is moving into traditional finance by introducing price-based contracts tied to stocks, gold, and oil. The platform has integrated Pyth data feeds to act as the automated resolution source, allowing outcomes for these new equity and commodity markets to settle automatically without manual intervention.
As the regulatory landscape shifts and platforms diversify their traditional finance offerings, traders can track these rapidly evolving contracts using predictionmarketstools.com.