[scheme271]

The interesting part is that he got charged with insider trading. A few attorneys on bluesky have pointed out that this is a novel use of this law since previously the trading occurred on regulated markets (e.g. SEC or CFTC regulated markets like stock markets and commodities/futures exchanges).

[5555624]

They are regulated. That's why Connecticut, Arizona, and Illinois are being sued by the government. They tried to regulate these markets and the CFTC says they regulate them, not the states.

[tsimionescu]

These markets are regulated by the CFTC, currently, so what exactly is novel here?

[kasey_junk]

Poly market is not a us exchange. Kalshi is.

[tsimionescu]

So is Polymarket US, the separate entity Polymarket created specifically for the USA.

[brainwad]

The argument goes that because Polymarket (.com) doesn't effectively block US users, it is in practice operating in the US even though it claims not to be. Similar to how the EU claims jurisdiction over foreign sites that process EU citizen data for GDPR.