CFTC Proposes Prediction Market Rules With 45-Day Comment Period
The draft would preserve most election and sports markets while giving regulators a case-by-case test for contracts tied to manipulation or public-interest concerns.
- On Wednesday, the Commodity Futures Trading Commission proposed new regulations for prediction markets, opening a 45-day public comment period to establish a formal framework for overseeing event contracts.
- Driven by the rapid growth of platforms like Kalshi and Polymarket, the proposal seeks to mitigate risks of insider trading and market manipulation in the prediction market sector.
- While generally permitting election and sports markets, the draft rules empower regulators to bar contracts contrary to the public interest, including bets on war, terrorism, assassination, and manipulation-prone outcomes like player injuries.
- Despite support from President Donald Trump for industry innovation, critics argue the proposal fails to protect consumers from what they describe as gambling, falling short of stricter regulatory demands.
- The agency will evaluate public feedback after the 45-day comment period as the regulatory framework continues to evolve amidst ongoing legal disputes with states over jurisdictional authority.
76 Articles
76 Articles
CFTC Proposes Its First Formal Prediction-Markets Rule to Vet Event Contracts on War, Gaming, and Unlawful Activity
The Commodity Futures Trading Commission published a Notice of Proposed Rulemaking on Wednesday seeking public comment on how to evaluate prediction-market event contracts, the agency’s first formal rule proposal aimed squarely at the fast-growing sector. The proposal amends CFTC Regulation 40.11 and adds a new Appendix F to Part 40. The rule responds to rapid growth in the number and variety of event contracts listed by CFTC-registered exchange…
SCIENCE & TECH: Regulators move to allow most sports betting, bar war wagers on prediction platforms like Kalshi, Polymarket
Federal regulators are moving to allow most sports betting while barring wagers on war and other controversial topics on prediction markets like Kalshi and Polymarket. The Commodity Futures Trading Commission’s new proposed rules were published online Wednesday and came in the wake of a series of insider-trading scandals in the brave new world of prediction markets. The new guidelines, first reported by the Wall Street Journal, are aimed at givi…
Hastings Tribune
The DerrickCFTC floats prediction market rule to crack down on war bets
The Commodity Futures Trading Commission unveiled a proposal for prediction markets Wednesday that would crack down on bets related to war, terrorism and assassination.
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