CNBC: Despite regulatory uncertainty, the prediction market platform continues to expand and raise funds

BlockBeats News, May 22, According to CNBC, despite the ongoing dispute between the U.S. federal government and several state governments over the regulatory authority of prediction markets, platforms such as Kalshi, Polymarket, Robinhood, and Coinbase are still intensifying their business operations. The report stated that currently, 17 states have challenged prediction market platforms, with some states considering sports event contracts essentially as gambling and thus should be regulated by state-level authorities; while the U.S. Commodity Futures Trading Commission (CFTC) argues that event contracts fall within the derivatives category and should be regulated by the federal government.

Meanwhile, the U.S. Congress has also begun to intervene. James Comer, Chairman of the House Committee on Oversight and Government Reform, has requested Kalshi and Polymarket to submit documents related to insider trading prevention mechanisms. Despite the regulatory uncertainty, the valuations of the relevant platforms continue to soar. Kalshi's latest valuation post-funding has reached $22 billion, doubling from $11 billion in December last year; Polymarket's valuation is reportedly up to $15 billion.

Executives of companies such as Flutter Entertainment, DraftKings, and Robinhood have all stated that they will continue to invest in prediction market businesses and believe that the relevant regulatory disputes will continue to evolve in the coming years.