Key Takeaways
- The Third Circuit is evaluating if the CFTC should have exclusive regulatory power over sports prediction contracts.
- The outcome could set jurisdictional standards affecting platforms like Kalshi and Polymarket.
The Third Circuit Court of Appeals today heard arguments regarding the Commodity Futures Trading Commission’s potential exclusive jurisdiction over sports prediction trading contracts, in a case involving Kalshi and New Jersey.
The case centers on whether the CFTC should have sole regulatory authority over contracts that allow trading based on sports event outcomes. Kalshi, a derivatives trading platform, is challenging the current regulatory framework for sports prediction markets.
The proceedings mark a key regulatory development for prediction markets in the US, as the court’s decision could establish clear jurisdictional boundaries for sports-related trading contracts.
The court’s ruling could impact both Kalshi and Polymarket, two platforms that offer prediction market trading services.
Source: https://cryptobriefing.com/cftc-jurisdiction-sports-contracts-case/