Kalshi and Polymarket valuation surge, regulatory controversy continues

According to CNBC, there is ongoing controversy over the ownership of market regulation in the United States, with 17 states challenging related platforms. Some states believe that sports event contracts are gambling and should be regulated at the state level, while the CFTC advocates that event contracts are derivatives and should be regulated at the federal level. James Comer, Chairman of the House Oversight and Government Reform Committee, has requested that Kalshi and Polymarket submit a document on insider trading prevention mechanisms. Despite regulatory uncertainty, Kalshi's latest post financing valuation reached $22 billion, doubling from $11 billion in December last year; Polymarket valuation rises to $15 billion. Flutter Entertainment, DraftKings, and Robinhood executives have stated that they will continue to invest in the predictive market business.