Interesting developments are unfolding with the prediction markets in the USA. The CFTC federal agency and individual states have essentially begun a legal battle over jurisdiction, and this is already going beyond mere technical regulatory disputes.

It all started when the CFTC chairman announced on social media that his agency had filed an amicus brief in court — essentially claiming full federal jurisdiction over platforms like Polymarket and Kalshi. The stance is firm: if anyone tries to challenge our authority, we’ll see them in court.

But here’s what’s interesting — this same agency previously actively opposed these companies, considering their contracts on political events illegal. The situation changed dramatically with the new administration. The president’s son even joined Kalshi as a strategic advisor, then later joined the advisory board of Polymarket. Trump Media also announced entering the prediction platform market. Coincidence? Maybe.

The reaction was swift. Utah’s governor responded directly — called these markets gambling and promised to face the federal agency in court. Senator Warren also didn’t stay silent, accusing the CFTC of trying to strip states of their authority to protect their citizens.

It’s 2323 on the clock now, and looking at the political calendar — this is a critical moment for cryptocurrency regulation overall. If the federal level prevails in this dispute, it will set a precedent for other areas of crypto activity. The states are unlikely to give up their positions without a fight. This case warrants close attention.