Prediction market platform Kalshi announced a permanent ban of former Republican Congressman George Santos over alleged rule violations in trading on the platform, highlighting regulatory gray areas.
Summary Prediction market platform Polymarket was found to have a critical price manipulation vulnerability: traders could exploit a five-second window to artificially push prices and extract millions in profits. After months of public warnings from onchain analysts, Polymarket is moving to implement time-weighted average prices. Details According to CoinDesk, the vulnerability stems from Polymarket’s pricing mechanism being too reliant on instantaneous prices, allowing attackers to profit by manipulating prices in extremely short time windows. Onchain security analysts discovered and publicly warned about this issue months ago, but the platform had not taken effective action until now. ...
A Michigan judge denied Coinbase’s bid to block state enforcement of a sports event contract, ruling against the crypto exchange’s attempt to avoid state-level regulation of prediction markets.
Crypto prediction market platform Polymarket is seeking a new funding round at a $20 billion valuation, reflecting intensifying competition in the sector after explosive growth.
A judge has blocked Minnesota from enforcing its prediction market ban, clearing the way for platforms like Kalshi and Polymarket to operate in the state.
Core Summary The US Commodity Futures Trading Commission has filed a legal action against Kentucky over prediction market jurisdiction. This is the latest move by the federal agency against state-level regulatory barriers, highlighting the power struggle between federal and state governments in the emerging fintech sector. Overview Kentucky becomes the latest state to clash with the federal agency over prediction market regulation. Multiple states have previously faced CFTC legal action over similar issues. The agency maintains that prediction markets fall under commodity trading and should be regulated uniformly at the federal level, not by individual state legislation. ...
Core Summary Meta is developing a prediction market application called Arena, according to the New York Times. The app will allow users to forecast future events using a points-based system rather than cash wagers, designed to navigate regulatory concerns. Overview This move comes as the prediction market sector expands rapidly. Platforms like Polymarket have already achieved major success in the crypto space. Meta’s entry signals that tech giants are recognizing the potential of this emerging sector. ...
CoinDesk reports that Kentucky is advancing regulatory legislation targeting prediction markets, potentially making the state a red state that clashes with the Trump team on policy. The Trump family has recently been deeply involved in prediction market platforms, and this regulatory move has raised industry concerns about political interference. Analysts note that prediction markets, as an important application track in the crypto industry, will affect the broader digital asset market landscape. ...
Major U.S. gaming industry groups sent a letter to the Senate calling for an explicit ban on sports and casino-style prediction markets in the crypto market structure bill under consideration.
Decentralized exchange Hyperliquid has launched its HIP-4 product, allowing traders to bet on off-chain events like inflation and interest-rate decisions. The markets are governed by validators and use automated newsfeed software to publish outcomes, directly challenging Polymarket.