BlockBeats News, June 18th, a federal judge in Michigan, USA, ruled that sports-related prediction market transactions do not constitute swaps regulated by the CFTC, and therefore are not within its regulatory jurisdiction.

The court also rejected the prediction market platform Polymarket's request to block Michigan regulators from restricting its sports event contracts, stating that the platform "is unlikely to prevail on the merits of the case."

The ruling pointed out that the related sports prediction contracts are closer to illegal sports betting rather than federal derivative market products. The case will proceed to the Sixth Circuit Court of Appeals and may ultimately be appealed to the U.S. Supreme Court.