Kalshi, Polymarket valuations jump as U.S. regulatory fight escalates

CNBC reports that a growing fight over U.S. regulatory jurisdiction is putting prediction-market platforms under pressure, with 17 states challenging related offerings. Several states contend that sports event contracts amount to gambling and should be overseen at the state level. The Commodity Futures Trading Commission (CFTC) argues the contracts are derivatives subject to federal supervision. House Oversight and Government Reform Committee Chairman James Comer has asked Kalshi and Polymarket to provide documentation detailing their safeguards against insider trading. Despite the uncertainty, Kalshi's valuation has doubled to $22 billion after its latest funding round, up from $11 billion in December last year. Polymarket's valuation has climbed to $15 billion. Executives at Flutter Entertainment, DraftKings and Robinhood say they plan to keep investing in prediction markets.