The federal government and multiple states in the United States are in dispute over regulatory authority over prediction markets, with 17 states challenging; some states believe that sports event contracts should be regulated by the states as gambling, while the CFTC argues that event contracts are derivatives and should be federally regulated. Congress has intervened, with James Comer demanding that Kalshi and Polymarket submit insider trading prevention documents. Despite uncertainties, Kalshi is valued at approximately $22 billion, and Polymarket at around $15 billion, with related executives still planning to continue investing. Regulatory disputes are expected to continue evolving over the next few years.

MarsBitNews

2026-05-22 15:59:52

Abstract generation in progress

Mars Finance News, May 22 — According to CNBC, despite ongoing disputes between the U.S. federal government and multiple state governments over the regulatory authority of prediction markets, prediction market platforms such as Kalshi, Polymarket, Robinhood, and Coinbase continue to increase their business investments. The report states that 17 states have challenged prediction market platforms, with some states considering sports event contracts inherently as gambling, to be regulated by state authorities; meanwhile, the U.S. Commodity Futures Trading Commission (CFTC) argues that event contracts fall under derivatives and should be federally regulated. At the same time, the U.S. Congress has also begun to intervene. Chairman James Comer of the House Oversight and Government Reform Committee has requested Kalshi and Polymarket to submit documents regarding mechanisms to prevent insider trading. Despite regulatory uncertainties, the valuations of related platforms continue to rise. After its latest funding round, Kalshi's valuation has reached $22 billion, doubling from $11 billion in December last year; Polymarket's valuation is reportedly up to $15 billion. Executives from companies such as Flutter Entertainment, DraftKings, and Robinhood have all stated that they will continue investing in prediction market businesses and believe that related regulatory disputes will continue to evolve over the next few years.

KALSHI-14.25%

POLYMARKET-5.62%

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MildlyRugged

· 5h ago

The Congress suddenly wants to investigate insider trading; does this mean the prediction market is about to change?

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BalanceScreenshotAfterTheRain

· 6h ago

James Comer, this letter was sent subtly. Are the Republicans planning to use prediction markets as a weapon?

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GateUser-665eb149

· 9h ago

Coinbase chimes in; no hot topic escapes their attention

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Half-UnderstoodZk

· 10h ago

State-level gambling license vs federal derivative brand license, the compliance costs are vastly different.

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GovernanceVoting

· 10h ago

It seems like in the end, there will be a dual-layer regulation, each overseeing their own area.

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Post-RainReflectionsMarket

· 10h ago

There will definitely be major mergers and acquisitions in this sector next year; I'll bet on it.

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Cross-SectionOfSucculent

· 10h ago

Retail investors only want to bet on the presidential election results, who cares if it's the CFTC or the state government

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IceCreamUnderTheNeonLights

· 10h ago

The regulatory ambiguity period is the window period, and platforms are all rushing ahead.

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