CFTC Proposes Prediction Market Rules With 45-Day Comment Period
The draft would let regulators reject contracts that pose manipulation risks while preserving most sports and election markets, the CFTC said.
- On Wednesday, the Commodity Futures Trading Commission released proposed rules to regulate prediction markets, establishing a framework to reject contracts deemed contrary to public interest while permitting most sports-related trading.
- Regulators drafted these rules amid concerns over insider trading and manipulation, as prediction markets like Kalshi and Polymarket have surged in popularity over the past year.
- The proposal generally permits sports-based contracts focused on final outcomes and win-loss records, but restricts wagers on player injuries and officiating decisions susceptible to manipulation while seeking public input on entertainment betting.
- While industry participants view the principles-based approach as a path forward, critics and state officials argue the rules fall short, contending these markets remain indistinguishable from gambling under current law.
- The draft rules are open for public comment for 45 days, with Chairman Michael Selig stating the agency intends to "protect the integrity of our regulated markets without standing in the way of responsible innovation.
54 Articles
54 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.
The Trump Administration Wants to Know If It Should Regulate Bets on Reality Shows
The CFTC, in a notice filed Wednesday, is specifically asking for comments on whether prediction market bets on "game shows, reality show competitions, pageants" should be permitted as is.
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