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In this crossover episode of Payments Pros and Regulatory Oversight, Stephen Piepgrass and Keith Barnett provide an update on the fast-developing prediction markets landscape. They discuss how federal and state regulators are responding to the growth of event contracts and the legal questions surrounding this emerging market. The conversation highlights the CFTC’s continued focus on oversight, market integrity, and the need for platforms to maintain strong controls to detect and prevent manipulation or other improper trading activity.

On June 17, 2026, the Federal Trade Commission (FTC) announced that, at its request, a federal court temporarily halted a sprawling enterprise of alleged deceptive subscription schemes, comprising 15 corporations and eight individuals, from continuing to deceive consumers with hidden costs and recurring charges, while failing to provide simple mechanisms to cancel subscriptions. The FTC filed its complaint in the U.S. District Court for the Northern District of California on a 2-0 commission vote.

On May 18, the Eighth Circuit held that NHTSA’s informal letters determining that certain aftermarket products violate Federal Motor Vehicle Safety Standard 108 constitute final agency action reviewable under the Administrative Procedure Act (APA). The 2-1 decision reverses the district court’s dismissal and remands for consideration of a preliminary injunction. The holding has implications well beyond the automotive-safety context and shows how the Eighth Circuit evaluates whether informal enforcement correspondence qualifies as final agency action.

Over the last couple of years, we have written about a federal case brought by the Twenty-Nine Palms Band of Mission Indians (the Tribe) (here, here, and here) involving key issues related to the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) authority to enforce the Prevent All Cigarette Trafficking Act (PACT Act) against federally recognized Indian tribes and ATF’s interpretation of key sections of the PACT Act. The Ninth Circuit Court of Appeals recently upheld a federal district court’s decision ruling against the Tribe.

On March 23, 2026, the U.S. Court of Appeals for the Eleventh Circuit rejected an effort to preliminarily enjoin Florida’s ban on lab‑grown meat. The Eleventh Circuit held that the Poultry Products Inspection Act (PPIA) does not preempt the state law because the outright ban on lab-grown meat does not regulate poultry facilities, operations, or ingredients.

On March 12, 2026, the Commodity Futures Trading Commission’s (CFTC) Division of Market Oversight issued Staff Advisory Letter No. 26-08 to all designated contract markets (DCMs), signaling a supportive stance toward prediction markets and other event-based derivatives, including contracts based on the outcome of sporting events. While reiterating existing compliance obligations, the advisory emphasizes the agency’s interest in fostering innovation and growth in these markets within the framework of the Commodity Exchange Act. At the same time, the CFTC released an advance notice of proposed rulemaking seeking broad public comment on whether and how to further regulate event contracts.

On March 6, 2026, a U.S. district court will consider whether to approve a settlement agreement resolving parallel lawsuits by the Texas attorney general (AG) and the federal government against Houston-area developer Colony Ridge Development, LLC and related companies. The complaints in both suits — which were filed during the Biden administration — claim that Colony Ridge discriminatorily targeted Hispanic consumers with predatory financing to purchase land for residences in areas that were in fact uninhabitable.

Stephen Piepgrass, a partner in Troutman Pepper Locke’s Regulatory Investigations, Strategy, and Enforcement Practice Group, was quoted in the January 30, 2026 Corporate Compliance Insights article, “CFTC Withdraws Proposed Rule on Prediction Markets.”

“Taken together, these statements leave observers unclear about what position the CFTC may ultimately take on insider trading-type behaviors,” Stephen…

In a pair of recent submissions to the Federal Communications Commission (FCC), a bipartisan coalition including more than 20 state attorneys general (AG) opposed action by the FCC to preempt state and local laws relating to artificial intelligence (AI). The coalition’s comments reflect persistent concerns among AGs about how businesses use AI when interacting with their residents, even as some federal policymakers support limiting states’ ability to address those concerns.