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US commodity regulator kicks off rulemaking for prediction markets
- On Thursday, the Commodity Futures Trading Commission issued initial guidance and began a binding rule process to oversee prediction markets including Kalshi, Polymarket, and Coinbase, calling them a "proven source of reliable information."
- Prediction markets exploded in popularity following the 2024 U.S. elections, prompting Chairman Mike Selig to abandon the CFTC's previous legal opposition and assert exclusive jurisdiction over platforms state gaming regulators also claim to oversee.
- Representative Mike Levin and Senator Chris Murphy are drafting legislation to curb these markets amid ethics concerns, while CME Group Chief Executive Terry Duffy said the "lines have become blurred" between hedging and gambling.
- The agency now requires firms to police for market manipulation and consult with sports governing bodies, while seeking public input on whether to prohibit wagers on terrorism, military action, or insider trading by federal employees.
- A 45-day deadline for public comment now begins, though the industry faces uncertain legal standing as Duffy noted the debate over whether these platforms constitute gambling will likely require Supreme Court intervention.
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25 Articles
25 Articles
U.S. commodity regulator kicks off rulemaking for prediction markets
The U.S. Commodity Futures Trading Commission on Thursday called for public comment ahead of a regulatory proposal it said would shape government oversight of the burgeoning market for events contracts and prediction markets
·United States
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Coverage Details
Total News Sources25
Leaning Left2Leaning Right0Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
L 33%
C 67%
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