Why Washington is backing prediction markets over state bans

Washington is drawing a bright line in a fast-growing corner of online trading: prediction markets should be treated like federally regulated financial products, not state-by-state gambling. The Trump administration’s Commodity Futures Trading Commission (CFTC), led by Chairman Michael Selig, is stepping into court fights involving platforms such as Kalshi and Polymarket as states move to block sports-style “event contracts.” The clash matters well beyond niche apps, because a win for the CFTC could curb states’ ability to police what they view as unlicensed betting. Federal power and prediction markets Prediction markets let people buy and sell contracts tied to real-world outcomes, think “yes/no” prices on whether an event happens, rather than placing a traditional bet against a sportsbook. Kalshi argues…