Kalshi and Polymarket have seen their valuations soar despite ongoing regulatory disputes in the U.S. over jurisdiction. Kalshi's valuation has doubled to $22 billion following a recent funding round, while Polymarket's valuation has increased to $15 billion. This surge comes as 17 states challenge the platforms, arguing that sports event contracts should be regulated as gambling at the state level, contrary to the CFTC's stance that they are derivatives under federal oversight. Amid this regulatory uncertainty, James Comer, Chairman of the House Committee on Oversight and Government Reform, has requested documentation from both companies on their insider trading prevention mechanisms. Despite these challenges, executives from Flutter Entertainment, DraftKings, and Robinhood have expressed continued interest in investing in prediction markets.