U.S. District Court Judge Paul Maloney for the Federal District Court in Michigan ruled that the sports event prediction contracts provided by Polymarket are not swap (Swaps) products subject to regulation by the U.S. Commodity Futures Trading Commission (CFTC), and dismissed Polymarket’s request for a preliminary injunction to block Michigan regulators from taking enforcement action. The court said Polymarket’s chances of winning on the merits are low and noted that the explanation for bringing the related sports betting within the scope of federal derivatives regulation is overly broad. (Decrypt)

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