Market platforms continue to expand and raise funds despite regulatory uncertainties

Although the U.S. federal government and multiple state governments continue to dispute the right to supervise the forecast market, forecast market-related platforms such as Kalshi, Polymarket, Robinhood, and Coinbase continue to increase their business investment. According to the report, 17 states have challenged the forecasting market platform. Some of them believe that sports event contracts are essentially gambling and should be managed by state regulators; while the U.S. Commodity Futures Trading Commission (CFTC) advocates that event contracts belong to derivatives. Category should be regulated by the federal government. At the same time, the U.S. Congress also began to intervene. James Comer, chairman of the House Oversight and Government Reform Committee, has asked Kalshi and Polymarket to submit documents on insider trading prevention mechanisms. Despite the uncertainty of the regulatory environment, valuations of relevant platforms continue to rise. Kalshi's latest post-financing valuation has reached US$22 billion, doubling from US$11 billion in December last year;Polymarket's valuation is reported to have risen to US$15 billion. Executives from companies such as FlutterEntertainment, DraftKings and Robinhood all said they will continue to invest in forecasting market businesses and believe that relevant regulatory disputes will continue to evolve in the next few years.