Polymarket Challenges State Regulations in U.S. Federal Court
Polymarket, a cryptocurrency-based prediction platform, has escalated its regulatory battle to a federal court. The company filed a lawsuit on February 10 against Massachusetts Attorney General Andrea Campbell and state gaming regulators, arguing that new state practices could disrupt its nationwide operations.
The Core dispute centers on whether prediction markets should fall under federal oversight as financial products or remain subject to state regulations. Polymarket asserts its contracts are within the jurisdiction of the Commodity Futures Trading Commission (CFTC), advocating for federal preemption over state laws.
Recent judicial interpretations in Massachusetts, including a ruling involving competitor Kalshi, have reinforced state control. The decision mandated restrictions on sports-related contracts, underscoring Congress's intent to preserve state regulatory authority in this domain.
