On December 19, 2025, a major regulatory dispute emerged as several U.S. states (Connecticut, Illinois, and Michigan) challenged the federal oversight of prediction markets on a leading crypto platform.

The platform argues that prediction markets are derivatives and should be regulated by the Commodity Futures Trading Commission (CFTC), not by individual states as gambling products.

This legal battle could set a precedent for how prediction markets are regulated in the U.S., impacting compliance requirements and the operational landscape for crypto platforms offering such products. Regulatory clarity remains crucial for broader institutional and retail participation in crypto markets.$BTC $

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