Regulatory Battle: Polymarket Pushes Back Against State Control
Polymarket is taking legal action against Massachusetts, asserting that only the CFTC has jurisdiction over event-based prediction markets.
This case is critical for on-chain liquidity. State-by-state enforcement risks creating geofencing and fragmented order books, which historically damages volume and participation. Polymarket is pushing for federal clarity to avoid that outcome.
A favorable ruling would strengthen the foundation for regulated on-chain derivatives.
Until then, regulatory uncertainty keeps the market in a wait-and-see mode.
Outlook: Neutral.