I don't think there isn't much room for regulatory backlash on the Augur team themselves. What they are building is a decentralized prediction market, meaning they do not own the platform, code, or anything. Creating the platform Augur is not illegal (protected by first amendment) as long as the code itself does not by default do some criminal or law breaking act. Now, if you are a user and you create a market, that would be illegal under US law. Augur is positioning themselves in this way it seems, that they merely wrote open source code for a decentrazlied application, and that they are not liable for what anybody does on it as they do not own it. Nobody owns it. However, thats if the laws play out like they should. Wouldn't be surprised if Augur gets seriously harassed by some agencies in the future. Kinda like how Cohen has millions in VC funding for creating a tool that is peer to peer data sharing, running BitTorrent Labs. Yeah, majority of BitTorrent usage is copywrited material, and many people using BitTorrent have been served notices form ISP's, been arrested and charged, etc. But he never was, BitTorrent by default doesn't force a user to share copywrited material. Looks like Augur is falling under "we don't force a user to create a market, it is their own choice of what they do on the platform, and they are held responsible for that". At least that's my best guess towards their defense, but you're probably pretty nieve to think that they have "no plan" this far in their planning. I am not a lawyer and this is just my best general understanding / best guess of how Augur is preparing for regulation issues, or, at least, maybe how they'll defend themselves.