U.S. CFTC Seeks Event Contract Definitions that May Defy States' Gambling Claims
The agency seeks to expand federal oversight of event contracts as courts split over whether sports bets on prediction platforms are swaps.
- The Commodity Futures Trading Commission sent two new rules to the White House's Office of Management and Budget on Sept. 28, aiming to redefine event contracts as swaps under federal oversight.
- This action follows recent legal setbacks where appeals courts ruled sports bets on Kalshi are not swaps, prompting the CFTC to defend its jurisdiction against state gambling regulations in at least nine states including New Jersey, Ohio, and Tennessee.
- One proposed rule would classify event contracts as swaps, while an "interim final rule" would exclude "casino-style gambling products" from the definition, clarifying the CFTC's regulatory stance.
- OMB officials are currently reviewing both submissions, a final step before the CFTC can publish the rules in the Federal Register for public comment and potential implementation.
- Beyond prediction markets, CFTC Chairman Michael Selig submitted a separate "prerule" focused on crypto regulations, though President Donald Trump has left him as the commission's sole member.
15 Articles
15 Articles
CFTC seeks to define event contracts as swaps amid prediction market fight
The classification could assist the CFTC’s claim that it has exclusive federal jurisdiction over event contracts offered on regulated prediction markets. The US Commodity Futures Trading Commission is seeking to clarify the definition of a “swap” amid a jurisdictional fight with state gambling regulators over prediction markets. An Office of Information and Regulatory Affairs docket […]
Illustrative image Photo: PexelsCFTC proposes to expand swap definition to include event contracts, says Cointelograph
CFTC Sends Two Prediction Market Rules to White House Review
The CFTC sent two regulatory proposals to the White House this Wednesday to solidify its exclusive authority over prediction markets. The agency specifically submitted the texts to the Office of Information and Regulatory Affairs (OIRA) to redefine the concept of a swap: a proposed rule that formally categorizes event contracts as financial derivatives, and an ...
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