Huge Regulation Effort for Prediction Markets: Vanderbilt's Yadav

The speaker notes the CFTC is "very positive" about Kalshi's compliance efforts and is working to set "guardrails" for US-based prediction markets, while noting that offshore platforms like PolyMarket operate in a "gray zone" outside CFTC jurisdiction. As the CFTC tightens the regulatory noose, volume will shift from unregulated offshore crypto platforms to compliant US infrastructure. Since Kalshi is private, the beneficiaries in the public market are the major derivatives exchanges (CME, ICE) that define the regulatory standard, and the retail brokers (Robinhood, Interactive Brokers) that are currently integrating regulated event contracts/prediction markets for US clients. LONG. Regulation acts as a moat, driving institutional and retail flow toward the listed, compliant US players. The speaker admits enforcement on blockchain-based, pseudonymous platforms is "extremely difficult," meaning offshore markets could retain liquidity dominance due to lower friction/costs.