a16z, one of the leading venture capital firms in the Web3 space, just picked a side in the biggest regulatory fight in crypto right now – and it’s not the statesa16z, one of the leading venture capital firms in the Web3 space, just picked a side in the biggest regulatory fight in crypto right now – and it’s not the states

REGULATION | a16z Backs the CFTC Against States Trying to Ban Prediction Markets

2026/05/03 16:00
2 min read
For feedback or concerns regarding this content, please contact us at crypto.news@mexc.com

a16z, one of the leading venture capital firms in the Web3 space, just picked a side in the biggest regulatory fight in crypto right now – and it’s not the states.

The venture firm filed a formal letter backing the CFTC against state regulators trying to ban prediction markets like Kalshi and Polymarket. Their argument: state crackdowns directly conflict with federal law and block ordinary users from accessing legitimate markets.

Kalshi and Polymarket, two of the largest prediction markets, are under attack from state regulators calling them unlicensed gambling.

What this means for the industry:

• The federal vs. state jurisdiction battle is escalating fast – the CFTC has already sued Illinois, Arizona, Connecticut, New York, and Wisconsin

• Monthly trading volume on prediction markets hit $25.7 billion in March 2026, with 80%+ of users being retail traders

• Polymarket is actively in talks with the CFTC to re-enter the U.S market after a 2022 ban

The real question isn’t whether prediction markets will survive – it’s who gets to regulate them. a16z is betting the answer is Washington, not state capitals.

Worth watching closely as this heads toward the Supreme Court.

Stay tuned to BitKE for deeper insights into the global crypto regulatory space.

Join our WhatsApp channel here.

Follow us on X for the latest posts and updates

Join and interact with our Telegram community

_________________________________________

Market Opportunity
VinuChain Logo
VinuChain Price(VC)
$0.000533
$0.000533$0.000533
-1.11%
USD
VinuChain (VC) Live Price Chart
Disclaimer: The articles reposted on this site are sourced from public platforms and are provided for informational purposes only. They do not necessarily reflect the views of MEXC. All rights remain with the original authors. If you believe any content infringes on third-party rights, please contact crypto.news@mexc.com for removal. MEXC makes no guarantees regarding the accuracy, completeness, or timeliness of the content and is not responsible for any actions taken based on the information provided. The content does not constitute financial, legal, or other professional advice, nor should it be considered a recommendation or endorsement by MEXC.

Starter Gold Rush: Win $2,500!

Starter Gold Rush: Win $2,500!Starter Gold Rush: Win $2,500!

Start your first trade & capture every Alpha move