Michigan Federal Judge Rules Sports Prediction Markets Not Under CFTC Jurisdiction

CoinFeed June 18 news, according to Decrypt, Michigan federal judge Paul L. Maloney ruled that sports prediction markets are not SWAP contracts regulated by the CFTC, denying Polymarket's request for a preliminary injunction to block the state from restricting its sports event contracts. The judge made it clear that Polymarket is unlikely to prevail in this case, and pointed out that sports-related betting does not constitute swaps and should not be regulated by the CFTC. The CFTC, with support from the Trump administration, has argued that it has the authority to regulate prediction markets under the Dodd-Frank Act and has sued multiple states attempting to restrict prediction markets. Judge Maloney's ruling held that Polymarket's interpretation of the scope of derivatives is overly broad and would encompass a large number of activities traditionally under state rather than federal responsibility.