CNBC: Despite regulatory uncertainty, prediction market platforms continue to expand and raise funds.

According to a CNBC report on May 22nd, despite ongoing disputes between the US federal government and several state governments regarding the regulatory authority for prediction markets, prediction market platforms such as Kalshi, Polymarket, Robinhood, and Coinbase continue to increase their investment in their businesses. The report states that 17 states have challenged prediction market platforms, with some arguing that sports event contracts are essentially gambling and should be regulated by state-level regulators; while the Commodity Futures Trading Commission (CFTC) maintains that event contracts fall under the category of derivatives and should be federally regulated. Meanwhile, the US Congress has also begun to intervene. James Comer, Chairman of the House Oversight and Government Reform Committee, has requested Kalshi and Polymarket to submit documents regarding insider trading prevention mechanisms. Despite the uncertainty of the regulatory environment, the valuations of these platforms continue to climb. Kalshi's valuation after its latest funding round has reached $22 billion, more than double its $11 billion valuation in December of last year; Polymarket's valuation is reportedly rising to $15 billion. Executives from companies such as Flutter Entertainment, DraftKings, and Robinhood have stated that they will continue to invest in prediction market businesses, believing that related regulatory controversies will continue to evolve in the coming years.