TD Cowen: Trump's CFTC Support Won't Alter Legal Fight

TD Cowen suggests that President Trump's public endorsement of the CFTC's stance on prediction markets will not significantly impact the ongoing legal battles. The firm believes the ultimate resolution for prediction markets will likely be determined by the Supreme Court. Currently, states appear to hold a stronger position in disputes concerning event contracts, which are central to the legal challenges faced by platforms like Polymarket and Kalshi. The core issue revolves around whether these contracts fall under federal commodities law or state gambling regulations.