Who has the right to regulate prediction markets?
For decades, gambling has been regulated by states that decide which forms of wagering are allowed and which are prohibited within their borders.
TL;DR
- Lawsuits over prediction markets are testing the authority of states to regulate gambling.
- The central question is whether prediction markets are gambling or financial products.
- The Commodity Exchange Act and the Commodity Futures Trading Commission (CFTC) are key to the federal regulatory aspect.
- The CFTC is challenging cease-and-desist orders and bans issued by seven states.
- The outcome could affect the future of prediction market companies and state vs. federal power.