Lawmakers Target Sports Betting, New Fund Launched

US lawmakers are proposing legislation to ban sports betting on prediction markets, impacting platforms like Polymarket and Kalshi. In response, CEOs from these companies are backing a new $35 million venture fund, signaling a strategic pivot or diversification effort within the prediction market space. This move comes amid increasing regulatory scrutiny of novel financial products and betting mechanisms. The broader implications for the fintech sector, particularly those involved in alternative trading and prediction markets, remain to be seen as this regulatory landscape evolves.