North Carolina Recognizes CFTC Authority Over Prediction Markets
North Carolina Recognizes CFTC Authority Over Prediction Markets
North Carolina's new budget law explicitly grants the Commodity Futures Trading Commission (CFTC) federal regulatory authority over prediction markets such as Kalshi and Polymarket. This legislation also sets a 6% tax rate for these entities, which is notably lower than regulatory approaches being pursued by other U.S. states.
North Carolina's Stance on Prediction Market Regulation
The state of North Carolina has moved to define the regulatory landscape for prediction markets within its borders through its recently passed budget law. This legislation clarifies that the Commodity Futures Trading Commission (CFTC) possesses federal regulatory authority over platforms like Kalshi and Polymarket. Furthermore, the law introduces a 6% tax on these markets. This specific tax rate and regulatory acknowledgement suggest a more accommodating approach compared to the potentially more stringent frameworks observed in other states, indicating a divergence in how U.S. jurisdictions are addressing the emerging prediction market sector.