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#PredictionMarketsCFTCBacking Prediction Markets Get CFTC Support (2026) As of February 2026, the Commodity Futures Trading Commission (CFTC) has shifted its stance on prediction markets under Chairman Michael Selig. Previously, the agency tried to block election betting. Now, it argues prediction markets fall under exclusive federal jurisdiction, meaning states cannot ban them under gambling laws. The CFTC has also withdrawn its earlier proposal to ban political and sports event contracts. Platform Update Kalshi – Fully operational and federally protected after winning its court case. Polymarket – Returned to the U.S. as a regulated exchange. Bottom line: Prediction markets are now treated as regulated financial products, not gambling.