00:00the prediction markets around the country sam facing some scrutiny now here and it appears
00:05as we discussed earlier in the show crypto.com is going to pull out of some states because
00:10they're getting some pushback as well and so uh you know naturally sam i think you do
00:16and everyone else knew that eventually eventually there was going to be some significant questions
00:22surrounding this it just comes down to eventually maybe how the supreme court or someone else
00:28views these prediction markets but for the time being i think smart move for these markets that
00:34don't fully support it to at least pull out for the time being unlike some others
00:38where they still continue to operate until they're told no you're doing this illegally
00:43yeah it's definitely been a game of how long can we kind of get away with this before
00:48the courts catch up as you know like when you talk about something going to the supreme court which
00:52it sounds like in this case is increasingly likely that takes a long time it has to go through the
00:57lower courts first which take their own long times and then eventually that has to get appealed
01:02whatever the decision is there and eventually it would make its way to the supreme court so we're
01:06talking not for you know the next couple of years at kind of the earliest and meanwhile prediction
01:12markets most of them aren't pulling out of states you have companies like calci crypto.com and others
01:18ramping up their partnerships partnering with uh more places to legitimize them places like cnn
01:24getting big investments and kind of sort of becoming too big to fail all while the legal
01:29system catches up you have those myriad of state lawsuits playing out in some cases companies have
01:35one favor with the judges allowing them to keep offering these sports prediction markets while the
01:40cases play out in other cases like in arizona that has not been the case but meanwhile you have kind
01:46of congress uh starting to at least become aware of the issue there was a reauthorization hearing held by the
01:52house committee on agriculture this week which was designed really just to see what was going on with
01:58the cftc which has been really understaffed and underfunded for years now but it quickly became uh
02:04a hearing that was focused on can the cftc even regulate this stuff should it regulate this stuff uh do
02:11we have to modify the commodities exchange act which essentially gave the cftc purview over sport or over
02:18event contracts before we even knew sports event contracts would be a thing so they had a number
02:23of experts and former commissioners and general counsel testifying saying that the cftc really
02:28cannot handle this kind of stuff unless you give it more resources or maybe congress members and
02:34senators have to propose legislation that would change the law so we'll see what happens there uh no
02:40legislation was proposed uh immediately um but it's definitely going to be an issue we keep watching as
02:46as this crazy prediction markets landscape keeps unfolding
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