THE DEBATE IN THE UNITED STATES CONGRESS ON THE POWER TO PREDICT MARKET REGULATION ESCALATED THE DISPUTE BETWEEN THE CFTC AND STATE GOVERNMENTS

The United States House of Representatives Committee on Agriculture Digital Assets panel held hearings to discuss the regulation of sports games through market forecasting, and lawmakers questioned whether existing laws and the resources of the CTC were sufficient to regulate this fast-growing industry. Over the past year, the Chairman of the CTC, Michael Selig, has taken a strong stand, arguing that the Agency has "exclusive jurisdiction" over the forecasted markets of Kalshi and Polymucket and has instituted proceedings against several states. However, the Länder countered that the platforms were in violation of the local law on gambling, in particular the provisions relating to sports. As the industry expands rapidly, the problem becomes more and more urgent. The current valuations for Kalshi and Polymarket are approximately $22 billion and $15 billion, respectively, and the CFTC initiated a rule-making process in March aimed at establishing a broader regulatory framework for forecast markets. Congressman Dusty Johnson said, "The courts and committees are acting, and I don't think Congress should remain silent. * I'm sorry *