The question of oversight and enforcement of prediction market platforms like Kalshi and Polymarket is currently being tested in US courts, as many state-level authorities have lawsuits pending against companies for alleged violations of laws betting on sports and elections. Last month, New Jersey officials filed a petition with the US Supreme Court to weigh in on their case against Kalshi, which could resolve disputes between federal and state regulators.
Blockchain.com was also reportedly considering an initial public offering with a valuation of up to $6 billion, expecting to raise $500 million.
CFTC chair pushes crypto regulation, citing FTX collapse
This week, CFTC Chair Michael Selig justified the agency’s attempts to move forward with cryptocurrency regulation through rulemaking rather than legislation passed by Congress, invoking the downfall of the FTX exchange. The crypto company filed for bankruptcy in November 2022 and led to criminal charges for many of its executives, including former CEO Sam Bankman-Fried.
In a Wednesday Fox Business interview, Selig said the proposed rules, which would affect companies registering as licensed crypto businesses, would bring “safeguards to crypto spot markets,” citing FTX’s collapse. On Friday, he posted that the agency’s rules would prevent “theft of customer funds as we saw with FTX.”
Selig remains the CFTC’s sole commissioner and chair, with no nominations for the four empty seats at the agency announced by the White House as of Friday. The chair has repeatedly said he plans to enact President Donald Trump’s crypto agenda and has also claimed the agency has exclusive jurisdiction over prediction markets.
