CFTC Chairman Michael Selig has announced the withdrawal of a proposal from the Biden administration era that aimed to ban political and sports event contracts. This move also includes the repeal of a related regulatory warning issued in 2025. Selig stated that the decision is intended to promote "responsible innovation" and reduce regulatory uncertainty, with plans to establish clearer rules under the Commodity Exchange Act. Meanwhile, several U.S. states are intensifying their crackdown on prediction markets. New York Attorney General Letitia James issued a consumer warning, labeling prediction markets as illegal gambling disguised as financial instruments. Additionally, a Nevada court has issued a temporary restraining order against Polymarket, prohibiting it from offering Super Bowl-related contracts in the state, and Connecticut has also issued a cease-and-desist order.