Polymarket Pushes for Margin Trading Amid Wall Street Crackdown
Polymarket is making a major push into advanced financial products, applying for a regulatory license to offer margin trading to its U.S. customers. According to CoinDesk, the application would allow users to open positions without posting full collateral. The move closely follows authorization granted to rival platform Kalshi in March for its own FCM-backed perpetuals.
However, the rapid expansion of these platforms is triggering alarm bells on Wall Street. Major financial institutions, including Goldman Sachs and Morgan Stanley, are actively restricting their employees from trading on prediction markets. The internal policy changes come as fears of insider trading spread across the financial sector regarding activity on Polymarket and Kalshi.
State-by-State Regulatory Battles Heat Up
As institutional scrutiny grows, the regulatory landscape for prediction markets remains highly fragmented at the state level. On Friday, a new North Carolina budget law officially recognized the Commodity Futures Trading Commission's (CFTC) federal regulatory authority over platforms like Kalshi and Polymarket. The state established a 6% tax rate for the markets, a figure notably lower than what other jurisdictions are currently pursuing.
Conversely, Kalshi is facing steep resistance in New York. The platform filed a same-day appeal to the Second Circuit court after a federal judge rejected its bid to block New York gambling officials from enforcing local laws against its sports event contracts.
Platform Migrations and Network Shifts
In the decentralized ecosystem, prediction market protocol World announced it will migrate away from Solana. The platform is moving to the Robinhood Chain as network metrics surge alongside new memecoin integrations and support from Pump.fun. For traders looking to track these shifting platform dynamics, volume changes, and odds, Prediction Markets Tools offers comprehensive analytics across the entire ecosystem.