Polymarket · Donald Trump · Federal Reserve (FED) · Supreme Court · US Congress · Decrypt
Michigan Federal Judge Rules Sports Prediction Markets Are Not Under CFTC Purview
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A federal judge in Michigan issued a forceful judgment Wednesday against Polymarket, ruling that sports-related prediction market wagers do not constitute swaps under the CFTC’s jurisdiction.
Key facts
- Under President Donald Trump’s second administration, the CFTC has aggressively claimed that it was given the authority to regulate prediction markets by existing laws, namely the Dodd-Frank Act
- Judge Maloney poured cold water on the CFTC’s legal posturing in Wednesday’s ruling
- A U.S. District Court judge in the Western District of Michigan denied Polymarket’s request for a preliminary injunction against Michigan regulators, who seek to restrict the prediction market
- In the Sixth Circuit, for instance—which includes federal courts in Michigan, Ohio, Kentucky, and Tennessee—one Ohio federal judge sided with state regulators in March
Summary
A Michigan federal judge ruled sports prediction markets are not CFTC-regulated swaps, siding with state regulators over Polymarket. The court denied Polymarket’s bid to block Michigan from restricting its sports event contracts. The case is headed to the Sixth Circuit Court of Appeals and could ultimately reach the U.S. Supreme Court. A U.S. District Court judge in the Western District of Michigan denied Polymarket’s request for a preliminary injunction against Michigan regulators, who seek to restrict the prediction market platform from offering sports-related wagers in the state.