[Opinion: The Outcome of Polymarket's Recent Lawsuit Will Determine U.S. Prediction Market Regulatory Jurisdiction] BlockBeats News, February 19: The recent federal lawsuit filed by Polymarket against Massachusetts could determine whether the regulation of U.S. prediction markets falls under federal or state jurisdiction. In the lawsuit, Polymarket argues that Congress has granted exclusive regulatory authority over 'event contracts' (such as sports and political prediction markets) to the U.S. Commodity Futures Trading Commission (CFTC), thereby rendering state governments unauthorized to independently prohibit or regulate these platforms. The lawsuit aims to prevent potential enforcement actions by Massachusetts Attorney General Andrea Campbell. Previously, a Massachusetts court issued a preliminary injunction against Polymarket's competitor, Kalshi, ruling that its sports-related contracts constituted unlicensed sports betting. The regulatory conflict between the U.S. federal government and states is intensifying. Prediction market platforms claim they are derivatives markets regulated by the CFTC and can operate nationwide. However, states such as Massachusetts and Nevada view them as 'sports betting loopholes' circumventing state gambling laws and have initiated multiple lawsuits and injunctions. The outcome of Polymarket's appeal could reshape the regulatory framework for U.S. prediction markets, determining whether these platforms can avoid state-level gambling regulations or must comply with varying state rules. The case could even ultimately be appealed to the U.S. Supreme Court.