TD Cowen Says Trump’s CFTC Backing Unlikely to Sway Prediction-Market Legal Battle
Summary
- TD Cowen said President Trump’s backing of the CFTC is unlikely to change the course of current lawsuits involving prediction markets.
- TD Cowen said the fight over regulatory authority for prediction markets and sports betting is likely to reach the US Supreme Court, and that it could take more than two years for the litigation to be fully resolved.
- The report said state governments currently hold the regulatory edge, and that the direction of US rules for prediction markets and sports betting could affect industry growth.
Forecast Trend Report by Period
President Donald Trump’s support for giving the Commodity Futures Trading Commission exclusive authority over prediction markets is unlikely to materially affect the legal fight already underway, TD Cowen said. Investors are focused instead on the clash between federal and state authorities over who should regulate the sector.
In a report cited by crypto-focused media outlet The Block on May 27, the investment bank said Trump’s remarks were unlikely to change the course of the current litigation.
Trump has previously said regulatory authority over prediction markets should rest exclusively with the CFTC. TD Cowen said the dispute over oversight of prediction markets and sports betting will likely end up before the US Supreme Court.
The report said state governments, which currently hold regulatory authority over sports gambling, have the upper hand for now. It also said it could take more than two years for the litigation to be fully resolved.
Prediction-market platforms including Kalshi and Polymarket have recently been engaged in legal disputes with some state governments. The direction of US rules for prediction markets and sports betting could shape growth in the industry, according to the report.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
