# CFTC Related Articles

HTX News Center provides the latest articles and in-depth analysis on "CFTC", covering market trends, project updates, tech developments, and regulatory policies in the crypto industry.

Baltimore Takes Legal Action Against Sports Prediction Markets

Baltimore and its mayor, Brendan Scott, have filed lawsuits against prediction market platforms Kalshi and Polymarket, alleging they operate as illegal, unlicensed sports betting platforms in violation of local gambling laws. The lawsuits contend that the platforms' event contracts are unlawful wagers under state law, misleading users about their legality. Baltimore specifically named Robinhood, Webull, and Coinbase as partners in the Kalshi suit, accusing all companies of unfair practices by advertising these products as legal in Maryland. The case highlights a growing conflict between state and federal authorities in the U.S., with many expecting it to reach the Supreme Court. The Commodity Futures Trading Commission (CFTC) and the companies argue these event contracts are regulated "swaps" under federal jurisdiction. In response, a Polymarket spokesperson stated that city-level actions contradict the established federal regulatory framework for CFTC-registered prediction markets.

cryptonews.ru08/13 21:46

Baltimore Takes Legal Action Against Sports Prediction Markets

cryptonews.ru08/13 21:46

City of Baltimore goes after prediction markets for sports betting

The City of Baltimore and Mayor Brendan Scott have filed lawsuits against prediction market platforms Kalshi and Polymarket. The city alleges these companies operate illegal, unlicensed sports-betting platforms that mislead users about the legality of their products. Officials argue that event contracts traded on these platforms constitute unlawful wagers under Maryland state law, not legitimate financial instruments. The complaint also names Robinhood, Webull, and Coinbase as partners in these alleged deceptive practices. This action represents a significant clash between state authorities and the U.S. Commodity Futures Trading Commission (CFTC), which asserts regulatory jurisdiction over such markets, classifying event contracts as "swaps." A Polymarket spokesperson countered that the city's lawsuit contradicts the established federal regulatory framework. Legal experts anticipate the conflict may ultimately require a Supreme Court resolution.

cointelegraph08/13 21:20

City of Baltimore goes after prediction markets for sports betting

cointelegraph08/13 21:20

CFTC together with SEC to study cryptocurrency regulation without CLARITY Act

The U.S. Commodity Futures Trading Commission (CFTC) announced a meeting of its advisory committee on August 20 to discuss crypto asset regulation, artificial intelligence, and prediction markets. The meeting will explore possible regulatory approaches for cryptocurrencies in the absence of Congressional action, likely referring to the failure of the U.S. Senate to advance the Digital Asset Market Structure Clarity Act (CLARITY) before its August recess. The announcement follows a similar notice from the SEC, which stated it would discuss a special regulatory regime for certain crypto asset investment contracts and would work within its authority to regulate crypto while also supporting Congressional efforts. Currently, Michael S. Gelber serves as the only Senate-confirmed CFTC commissioner and the agency's chairman, with no indication from President Donald Trump of plans to nominate additional commissioners, a situation that has drawn concern from lawmakers.

cryptonews.ru08/13 19:48

CFTC together with SEC to study cryptocurrency regulation without CLARITY Act

cryptonews.ru08/13 19:48

CFTC to join SEC in exploring crypto regulations without CLARITY bill

The CFTC announced a committee meeting for August 20th to advise on cryptocurrency regulation, among other topics, in the absence of new congressional legislation, specifically referencing the stalled CLARITY Act. The SEC has scheduled a similar meeting to discuss tailored rules for crypto investment contracts, stating it will act within its existing authority while supporting congressional efforts. This comes as the CFTC currently operates with only one confirmed commissioner, prompting calls for the president to fill the vacancies.

cointelegraph08/13 18:30

CFTC to join SEC in exploring crypto regulations without CLARITY bill

cointelegraph08/13 18:30

Hyperliquid and other DeFi services are targeting the US market. What's the problem

The consideration of the crucial US crypto market regulation bill, the CLARITY Act, has been postponed to September in the Senate. However, even if passed, it will not address the regulation of fast-growing crypto industry segments like Decentralized Finance (DeFi). Therefore, popular DeFi projects such as Hyperliquid and Morpho are lobbying US regulators for specific exemptions and clarifications to allow them to operate in the US market. The CLARITY Act aims to clarify jurisdictional oversight between the SEC and CFTC for the spot crypto market but will only indirectly affect DeFi. Hyperliquid lobbyists, through the Hyperliquid Policy Center, are engaging with the CFTC and SEC. They propose allowing regulated US companies to offer clients perpetual futures trading on Hyperliquid's public blockchain and seek exemptions for developers of non-custodial applications. A key regulatory challenge is that Hyperliquid's on-chain model, where users self-custody assets, doesn't fit existing laws designed for regulated intermediaries. Further complexity arises as Hyperliquid offers perpetual futures tied not just to crypto and commodities but also to stocks like SpaceX, potentially falling under SEC jurisdiction. Simultaneously, the CLARITY Act largely overlooks decentralized lending. Morpho, whose deposits have nearly doubled to over $12 billion, has met with the SEC to discuss the regulatory status of crypto vaults. The SEC has warned that some vault operations may constitute securities activities and is considering rule changes. While platforms like Coinbase have integrated Morpho, its counsel suggests that passing the CLARITY Act could boost traditional finance's confidence in engaging with on-chain lending pools.

cryptonews.ru08/13 12:10

Hyperliquid and other DeFi services are targeting the US market. What's the problem

cryptonews.ru08/13 12:10

Hyperliquid Seeks Legal Path to Launch Perpetual Trading in the United States

Hyperliquid, a cryptocurrency exchange, is intensifying its lobbying efforts with U.S. regulators, including the CFTC and SEC, to find a legally compliant way to launch perpetual futures trading for American users. Currently, U.S. users are blocked from accessing the platform due to regulatory gaps that leave certain crypto derivatives outside the scope of the Commodity Exchange Act. Through its funded Hyperliquid Policy Center, the company is conducting research and advocacy in Washington, D.C., aiming to establish a regulated framework for on-chain perpetual contracts and decentralized market infrastructure in the United States. This push comes as U.S. regulators are already beginning to adapt, with the CFTC recently approving a Bitcoin-spot perpetual contract and seeking public comment on other perpetual products. Meanwhile, broader crypto market data for July shows a significant decline in trading volumes, with total futures volume on centralized exchanges hitting its lowest level since December 2023.

cryptonews.ru08/12 20:51

Hyperliquid Seeks Legal Path to Launch Perpetual Trading in the United States

cryptonews.ru08/12 20:51

New York City Council Announces Investigation into 'Aggressive Marketing Practices' in Prediction Markets

The New York City Council has launched an investigation into prediction market companies to determine if they use influencers and "false and deceptive marketing" to attract young people. Council Speaker Julie Menin sent letters to companies including Kalshi, Polymarket, Coinbase, and Gemini Titan regarding their aggressive marketing practices. The investigation will assess whether additional measures, such as legislation, public education, or enforcement, are needed. Council member Shekar Krishnan, chair of the oversight committee, criticized such apps for uncontrolled growth, alleging they lure youth and minors with misleading tactics. This probe adds to the ongoing regulatory conflict over prediction markets, where some state gambling regulators view sports-related contracts as illegal betting, while the federal Commodity Futures Trading Commission (CFTC) considers them swaps under its jurisdiction. In response to inquiries, a Coinbase representative stated the company provides access to federally regulated markets overseen by the CFTC and complies with all laws, while a Polymarket spokesperson said they look forward to discussing the matter with the City Council.

cryptonews.ru08/12 20:45

New York City Council Announces Investigation into 'Aggressive Marketing Practices' in Prediction Markets

cryptonews.ru08/12 20:45

NYC council announces probe into ‘predatory marketing practices’ on prediction markets

The New York City Council has launched an investigation into companies operating prediction markets, including Kalshi, Polymarket, Coinbase, and Gemini. The probe will examine allegations of "false and deceptive" and "predatory" marketing practices, particularly through social media influencers, aimed at young adults and minors. The council aims to determine if new legislation, enforcement, or education measures are needed. This action adds to the regulatory tension surrounding prediction markets, as state gaming authorities often view them as illegal sports betting while the federal Commodity Futures Trading Commission (CFTC) considers them regulated swaps. The companies responded by stating compliance with laws and a willingness to engage with the council.

cointelegraph08/12 20:36

NYC council announces probe into ‘predatory marketing practices’ on prediction markets

cointelegraph08/12 20:36

Kalshi Launches Data Feed on Sports and Cryptocurrency Perpetual Contracts via DoubleZero

Kalshi, a prediction market, has launched a real-time order book data feed for its sports and cryptocurrency perpetual contracts via DoubleZero's dedicated fiber-optic network, DoubleZero Edge. This provides subscribers with machine-readable market data without requiring them to build their own API-based infrastructure. DoubleZero co-founder Austin Federa emphasized that access to such data is a critical part of market structure, which has been lacking in newer financial segments like crypto, perpetuals, and prediction markets. He stated this initiative provides institutional-grade infrastructure to industry participants. According to Dune data, sports is Kalshi's second-largest category by weekly notional trading volume at 37.8%, while crypto is third at 20.3%. Exotic events rank first. This launch occurs amidst a regulatory dispute over Kalshi's sports contracts. Several U.S. states, including Michigan, Kentucky, and Nevada, have taken legal action or issued temporary bans, arguing these contracts are unlicensed sports betting. Kalshi and the Commodity Futures Trading Commission (CFTC) maintain they are derivatives under the CFTC's exclusive jurisdiction. The CFTC has also sued some states over this matter. Separately, OpenAI recently began displaying Kalshi's prediction market odds for FIFA World Cup matches in ChatGPT search results.

cryptonews.ru08/12 20:16

Kalshi Launches Data Feed on Sports and Cryptocurrency Perpetual Contracts via DoubleZero

cryptonews.ru08/12 20:16

FlightAware drops Kalshi lawsuit one day after filing

FlightAware voluntarily dismissed its lawsuit against prediction market platform Kalshi just one day after filing it in a New York court. The initial suit alleged trademark infringement, breach of contract, and unfair competition, claiming Kalshi used FlightAware's name and data for "gambling markets on flight cancellations." The quick dismissal hints at a possible private settlement, though neither company commented. Notably, Kalshi had already altered its event contracts to replace "FlightAware" with a generic "Primary Source Agency" disclaimer. The lawsuit was part of broader legal challenges for prediction markets. Kalshi and similar platforms face actions from multiple US state authorities over alleged illegal sports betting. This case also highlights a jurisdictional conflict: while states like New York and Michigan have moved to restrict Kalshi, the US Commodity Futures Trading Commission (CFTC) asserts exclusive federal authority, recently using emergency powers to block a New York restraining order against the company.

cointelegraph08/12 17:06

FlightAware drops Kalshi lawsuit one day after filing