Polymarket vs Regulators: The Battle for On-Chain Liquidity Begins
Polymarket
has officially sued the state of Massachusetts, arguing that individual
states lack the authority to regulate prediction markets. Their stance
is clear: only the CFTC (federal) can regulate event-based contracts.
This is a massive development for market structure. Currently, rivals like Kalshi face strict geofencing. Polymarket is fighting for national
clarity to prevent a fragmented, state-by-state regulatory mess that
kills liquidity.
*The Alpha* A win here validates on-chain
derivatives as financial products rather than gambling. This would
establish the CFTC as the primary regulator, a critical step for
institutional adoption and long-term stability for assets like $BTC
#Polymarkets #regulations