Bobby Allyn

In fact, there is a new White House administration.

advisory board that was comprised of, you know, leading figures from the crypto, fintech, and prediction market industry who are going to be giving the White House sort of advice on how to ensure that this industry continues to prosper.

Logan Suttis, the trader you heard from earlier who spends like 100 hours a week on these apps, told me Trump has really cleared the lanes for these apps.

And it's worth noting that the Trump family is directly invested in this industry.

Donald Trump Jr., the president's son, is an advisor to both Cauchy and Polymarket, and he's a partner of a venture capital firm that has invested $10 million in Polymarket.

Yeah, they say there's no house, right?

That it's not like gambling.

Here's Carl Lockhart.

He's a law professor at DePaul University explaining the logic.

Their argument essentially boils down to that.

But they have a huge incentive to not be legally classified as gambling because that would subject them to state and tribe gaming commission regulations and all sorts of rules and paying lots and lots of taxes to states.

It would be a total sort of regulatory headache and a business headache for them to be considered gambling because gambling is much more regulated than prediction markets are.

Right.

Well, the chair of the CFTC released a video on X recently saying that they want to back all of the legal challenges nationwide where states are suing and saying, you guys are nothing more than gambling, an unlicensed gambling operation.

We want to kick you.

out of the state.

So the CFTC's official position right now is that, yes, they are fine to be in this legal category as a type of derivative, as a futures contract and not gambling.

And again, even if the CFTC had a more adversarial position here, had a position of really being an aggressive watchdog, I talked to several former CFTC chairs who said,

they are so under-resourced for this.

They do not have the capacity to be checking in on and vetting hundreds of thousands of markets every single year from just one app, right?