Regulatory Wins for Prediction Markets
The regulatory landscape for event contracts shifted dramatically this week as the Commodity Futures Trading Commission (CFTC) officially withdrew a Biden-era proposal that sought to ban sports and political prediction markets. According to Cointelegraph, CFTC Chair Mike Selig described the scrapped proposal as a “frolic into merit regulation,” signaling a more open environment for the industry in 2026.
This federal shift coincides with a victory at the state level. A Nevada judge has declined to grant an emergency bid by regulators to halt Coinbase’s event contract markets. As reported by Cointelegraph, the exchange successfully argued against the injunction while pressing a preemption argument regarding CFTC authority in federal court.
Kalshi Sees $170M Super Bowl Volume
With regulatory headwinds easing, trading activity is surging. Regulated exchange Kalshi has reported nearly $170 million in bets related to the Super Bowl. To manage this high-stakes environment, Kalshi has established an independent surveillance committee to boost oversight. This move comes as traders and regulators alike scrutinize market integrity during high-volume sports events.
Polymarket Files for Token Trademarks
In the offshore sector, Polymarket is signaling a potential evolution of its platform. Decrypt reports that the platform has filed trademark applications for "POLY" and "$POLY," specifically tied to digital tokens and crypto trading services. This development follows news that Polymarket is partnering with Circle to migrate from bridged USDC to native USDC settlement, a move designed to improve transaction speed and reduce reliance on cross-chain bridges.
While financial and political markets dominate, niche markets continue to attract speculative interest. For those using prediction market tools to track outlier events, CoinDesk notes that the odds of Jesus Christ appearing in 2026 have doubled on Polymarket, currently offering a higher return on investment than Bitcoin in the short term.