Overview
- The CFTC said it is working with major U.S. sports leagues and using AI and blockchain tracing tools to spot insider trading and manipulation on prediction platforms.
- Kalshi has flagged more than 400 suspicious trades this year and Polymarket has seen a sharp rise as well, according to Reuters reporting on the platforms' internal reviews.
- Regulators sent mixed signals as the SEC again delayed proposed prediction‑market ETFs, while CFTC staff eased some reporting rules for event contracts and filed a brief supporting Kalshi in an Ohio dispute.
- The jurisdiction fight deepened as Arizona brought criminal gambling charges against Kalshi despite its CFTC oversight, highlighting the clash between federal and state authority.
- Polymarket is negotiating with the CFTC to end its U.S. ban by linking its crypto system to QCX, a CFTC‑registered exchange, a potential path to reopen its main market to American users.