Nevada Court Challenges CFTC Exclusivity with Polymarket Ban
In a significant regulatory blow to the world's largest prediction market, a Nevada judge has issued a temporary restraining order (TRO) barring Polymarket from offering event contracts within the state. As reported by Cointelegraph, the ruling specifically pushes back against the platform's defense that only the Commodity Futures Trading Commission (CFTC) has the authority to police these markets.
The decision marks a critical juncture for the industry, as state-level interventions begin to test the federal preemption arguments often used by crypto-native platforms. According to Decrypt, this legal action comes amidst a broader wave of global regulatory pressure facing prediction markets in 2026. Users monitoring regulatory shifts via predictionmarketstools.com should note that this ruling could set a precedent for other state regulators to bypass federal gridlock.
Hyperliquid Enters the Arena, HYPE Surges 20%
While incumbents face legal headwinds, new competitors are aggressively entering the space. The HYPE token jumped 20% today after the Hyperliquid team officially supported a proposal to introduce "outcome trading" to their decentralized exchange. Cointelegraph notes that the feature is designed to function as a form of derivatives trading but without leverage, liquidations, or margin calls.
The move is part of the proposed HIP-4 upgrade, which aims to integrate prediction markets directly into Hyperliquid's high-throughput architecture. Decrypt reports that this expansion positions Hyperliquid as the latest major DeFi project to venture into event wagering, attempting to capture volume from dedicated platforms like Polymarket.
Bearish Bitcoin Sentiment Dominates
On the trading floor, sentiment regarding the broader crypto market has turned decidedly bearish for the year. Current betting data on Polymarket indicates a 72% probability that Bitcoin will slip below $65,000 in 2026. Analysts cite tight U.S. liquidity conditions as a primary driver for the pessimistic outlook, according to market data.
Meanwhile, savvy traders continue to profit from volatility. Ethereum founder Vitalik Buterin recently revealed he netted over $70,000 by betting against "Crazy Mode"—or extreme market sentiment—highlighting that contrarian strategies remain profitable even in uncertain regulatory environments.