A federal judge in Michigan ruled that the sports prediction market is not within the scope of CFTC regulation and rejected Polymarket's injunction request

According to Decrypt, Michigan federal judge Paul L. Maloney ruled that the sports forecasting market is not a SWAP contract regulated by the CFTC, rejecting Polymarket's preliminary injunction request to prevent the state from restricting its sports event contracts. The judge pointed out that sports related betting does not belong to swaps and should not be regulated by the CFTC. The CFTC, supported by US President Trump, advocates its authority to regulate the forecasting market under the Dodd Frank Act. Judge Maloney believes that Polymarket's interpretation of the scope of derivatives is too broad and would include a large number of activities that traditionally fall under state rather than federal responsibility.