Compromise Unlikely in CFTC Prediction Market Battle

Lawyers warn a compromise is unlikely in the increasingly bitter battle between the Commodity Futures Trading Commission and several US states over prediction markets. The CFTC has filed lawsuits against nine states whose attorneys general attempted to block or restrict platforms such as Kalshi and Polymarket from operating in their jurisdictions.

The dispute is framed as a regulator-versus-states fight for control of prediction markets, and experts say a settlement between the warring parties looks unlikely. The legal actions leave unresolved which authorities will be able to limit or permit prediction market platforms in affected US jurisdictions as the court cases proceed.