A federal judge in Michigan has ruled that sports prediction markets are not subject to regulation by the Commodity Futures Trading Commission (CFTC). U.S. District Judge Paul L. Maloney denied Polymarket's request for a preliminary injunction to prevent the state from restricting its sports event contracts, stating that these do not qualify as SWAP contracts under CFTC jurisdiction. Judge Maloney emphasized that sports-related betting does not constitute a swap and should remain under state regulation. This decision challenges the CFTC's stance, supported by the Trump administration, that it has authority under the Dodd-Frank Act to regulate such markets. The case is set to be heard by the Sixth Circuit Court of Appeals next month, with a potential escalation to the Supreme Court.