BlockBeats news, on May 22, according to CNBC, despite ongoing disputes between the U.S. federal government and multiple state governments over regulatory jurisdiction over prediction markets, 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 arguing that sports event contracts are essentially gambling and should be regulated by state authorities, while the U.S. Commodity Futures Trading Commission (CFTC) maintains that event contracts fall under the category of derivatives and should be federally regulated.
Meanwhile, the U.S. Congress has also begun to intervene. James Comer, Chairman of the House Committee on Oversight and Government Reform, has requested that Kalshi and Polymarket submit documents detailing their insider trading prevention mechanisms. Despite regulatory uncertainty, valuations for these platforms continue to rise. Kalshi’s latest post-funding valuation has reached $22 billion, doubling from $11 billion in December last year; Polymarket’s valuation is reportedly now at $15 billion.
Executives from companies such as Flutter Entertainment, DraftKings, and Robinhood have stated that they will continue to invest in prediction markets and believe that related regulatory disputes will continue to evolve over the coming years.