CFTC Aggressively Defends Prediction Market Jurisdiction
The US Commodity Futures Trading Commission (CFTC) has launched its fifth lawsuit against a US state, suing Wisconsin to assert federal jurisdiction over prediction markets. CFTC Chair Mike Selig has explicitly vowed to sue any state attempting to regulate these platforms under local gambling laws.
Amid this strong federal backing, Polymarket is reportedly in talks with the CFTC to restore full US access. This regulatory push follows the platform's limited US rollout in December 2025, which strictly focused on sports contracts in the wake of its 2022 regulatory settlement.
Robinhood's Prediction Market Surge Offsets Crypto Slump
Retail brokerage Robinhood saw its stock fall 8% after a significant earnings miss driven by a 47% crash in crypto trading revenue, which fell to $134 million in Q1. However, according to CoinDesk, a record-breaking surge in prediction market bets helped push the company's overall revenue up 15% to $1.07 billion.
Polymarket Whales and Institutional Moves
While prediction markets are boosting retail platforms, profitability on decentralized platforms remains heavily concentrated. New data reveals that under 1% of wallets capture roughly half of all profits on Polymarket. Traders looking to analyze these concentrated profit dynamics can leverage predictionmarketstools.com to track wallet performance and market trends.
In a move signaling further institutionalization of the sector, MoonPay has acquired Israeli crypto security firm Sodot in a $100 million stock deal. The acquisition provides security infrastructure for a new institutional business led by former CFTC Acting Chair Caroline Pham.