Why the Prediction Market are Shutting Down

By WiseKing | EduCrypto | 19 Feb 2026


One may ask, why this regulatory fight matter for crypto…

A major regulatory clash is unfolding in the U.S. over who controls prediction markets and the decision could impact crypto-linked platform around the world. What then is happening? It’ll interest you to know that the Commodity Future Trading Commission (CFTC) are indicating that prediction markets are financial derivatives under federal law.

There are several crypto platforms like ‘Crypto.com’ and prediction exchange ‘Kalshi’ are now at the center of this legal battle. Now the big questions on some investors lips, is if the CFTC wins, then the Federal legitimacy such as institutional money could enter.

Regulatory clarity often brings capital and the prediction markets could become a new crypto sector. The investor insight, glue to shorten term with volatility while in long term, tokenized events trading could

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WiseKing
WiseKing

Writer and Researcher of Academic content


EduCrypto
EduCrypto

EduCrypto is a Blockchain, Technology, and Education-focused platform that inform readers, writers and crypto enthusiastic on what happening around Tech and Cryptocurrency world.

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