A significant legal showdown is unfolding in the United States over prediction markets, with the CFTC (Commodity Futures Trading Commission) asserting its authority against state regulators who seek to impose restrictions on these platforms. The CFTC, backed by the Trump administration, has sided with prediction market companies like Kalshi and Polymarket, insisting that states are overstepping their bounds. Critics, including some state officials and Senate Democrats, argue that the move could destabilize regulatory practices and potentially lead to a financial crisis. With key players in government and the private sector preparing for legal battles, the outcome of this dispute could reshape the landscape of prediction market regulation in the country.