- The Digital Chamber launches a Prediction Markets Working Group to advocate for federal regulatory clarity.
- The CFTC’s chairman asserts federal jurisdiction, clashing with states labeling the markets as illegal gambling.
- Prediction market platforms like Kalshi and Polymarket face enforcement actions and lawsuits from state regulators.
On Tuesday, The Digital Chamber announced a multi-year initiative to support a segment of finance it calls misunderstood. The launch of its Prediction Markets Working Group aims to engage with regulators and build a coalition for the industry.
The group’s first official act was sending a letter praising CFTC chairman Mike Selig. The letter, announced on X, supported his efforts to maintain federal jurisdiction and called for an end to regulation by enforcement. “For too long, operators in this space have navigated a maze of regulatory ambiguity,” the group stated.
However, state-level pressure intensified simultaneously. The Nevada Gaming Control Board hit the platform Kalshi with a civil enforcement action on the same day. Consequently, regulators in multiple states are pushing to stop Kalshi and competitor Polymarket, arguing they offer unlicensed gambling.
Meanwhile, Polymarket filed a federal lawsuit against Massachusetts last week to preempt state action. This legal move argues the CFTC has primary oversight, a position Chairman Selig strongly echoes. “Prediction markets aren’t new — the CFTC has regulated these markets for over two decades,” he emphasized on Monday.
In stark opposition, Utah Governor Spencer Cox welcomed a potential legal clash, labeling the markets as gambling. He argued these activities are “destroying the lives” of Americans and fall outside the CFTC’s remit.
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