"Prediction markets like Kalshi and Polymarket have a powerful new ally: the Trump administration. Commodity Futures Trading Commission Chairman Michael Selig, the country's top federal regulator of prediction markets, came out hard in favor of prediction markets in a video posted to X on Tuesday. "Today, the CFTC is taking an important step to ensure that these markets have a place here in America," Selig said."
"The most immediate move Selig made was filing a brief arguing that the federal government - not the states - has the authority to regulate prediction market platforms. It comes as states continue to file lawsuits to stop prediction markets from operating what they argue are illegal sports betting platforms. That was music to the industry's ears. But Selig didn't simply make an argument about who has the authority to regulate prediction markets."
"He also praised the markets themselves, saying that they "provide useful functions for society," including "hedging commercial risks" and serving "as an important check on our news media and our information streams." It comes amid a wider debate over the role of prediction markets in society, with concerns about potential insider trading and the proliferation of gambling increasingly defining the debate."
CFTC Chairman Michael Selig filed a brief asserting that the federal government, not states, has authority to regulate prediction-market platforms. Selig framed the move as protecting the markets’ place in America and praised their functions, including hedging commercial risks and checking news media and information streams. States have filed lawsuits alleging that some platforms operate as illegal sports betting. The industry endorsed CFTC jurisdiction as best suited to ensure market integrity. Critics, including several lawmakers, raised concerns about insider trading, gambling proliferation, and gamification, with some likening the platforms to a scam.
Read at Business Insider
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