WilmerHale Partner Matt Kulkin was quoted in Bloomberg Law on increasing legal and regulatory pressure surrounding prediction markets, including disputes between the Commodity Futures Trading Commission and state and federal lawmakers over the scope of the agency’s authority.

The article examines recent legislative efforts and ongoing litigation addressing event‑based contracts tied to sports, elections, and geopolitical events, as well as the CFTC’s evolving approach to oversight and enforcement. Matt discussed the historical role of exchanges and the agency’s principles‑based regulatory framework, as well as the potential need for clearer rules governing prediction markets.

Excerpt: “Historically, the exchanges have been the first level review for monitoring market participants and their activity, with the CFTC conducting oversight primarily for fraud and manipulation. … Relying on markets for some oversight functions is consistent with the CFTC’s principles‑based regime where the exchanges are each self‑regulatory organizations responsible for the activities on their playground.”

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