CFTC and DOJ Clash Over Prediction Market Enforcement
A federal judge has stayed the CFTC's civil enforcement action against a U.S. soldier accused of placing bets on Polymarket using nonpublic information. The regulator is now attempting to intervene in the parallel criminal case, creating an unsettled question about which enforcement authority—and which legal framework—governs prediction market trading.
The dispute reflects deeper jurisdictional tensions between the CFTC's commodity derivatives authority and criminal law enforcement. The case will likely influence how regulators interpret their authority over decentralized prediction markets, a growing segment of the crypto ecosystem.
State-Level Crypto Taxes Draw Constitutional Challenges
Two digital asset advocacy groups have filed suit against Illinois's 0.2% tax on crypto transactions, joining an earlier challenge by the Digital Chamber. The lawsuits argue the tax violates constitutional and due process protections, marking an escalation in legal fights over state-level digital asset regulation.
