Industry decries CFTC probe into Polymarket as stifling innovation

The U.S. Commodity Futures Trading Commission's (CFTC) surprise investigation into prediction market platform Polymarket is drawing strong backlash from the crypto and fintech industries, the Financial Times reported. Industry members have characterized the probe as excessive regulatory pressure that stifles innovation in collective intelligence and data analysis. Experts and supporters argue that Polymarket is not purely a gambling platform but rather a valuable tool for accurately predicting the outcomes of electoral, economic, and social events. The industry criticized U.S. state governments and other groups for treating the platform like illegal sports betting, calling it an outdated and heavy-handed regulatory approach to new financial technology.