One prediction market has hit $100 billion in annualized volume while holding CFTC regulatory approval—a rare position in the space. The integration is accelerating: blockchain infrastructure partners have now tokenized its markets onchain, with over 75 applications already connected to the ecosystem. Regulatory pushback at the state level added friction recently, with Tennessee issuing cease-and-desist orders affecting multiple platforms. But here's the pattern: federal regulatory clarity consistently overrides state-level enforcement in crypto and derivatives markets. When CFTC authorization is in place, state restrictions tend to get tested and often don't hold up under federal supremacy principles. The broader takeaway—regulated prediction markets are proving they can scale significantly, and the regulatory framework is beginning to settle in ways that actually permit innovation rather than just blocking it.