CFTC gives prediction markets leeway on data and record-keeping rules

The Commodity Futures Trading Commission (CFTC) has granted "no-action" letters to several prediction market platforms, including Polymarket US, LedgerX, PredictIt, and Gemini Titan, exempting them from certain swap data reporting and record-keeping regulations. The Division of Market Oversight and the Division of Clearing and Risk stated that they will not pursue enforcement actions provided these platforms adhere to specific conditions. These conditions mandate that the platforms must fully collateralize all their contracts with assets held in reserve and publish time and sales data for all event contract transactions on their websites immediately after execution. Prediction markets are typically regulated as designated contract markets, triggering extensive obligations, but these letters temporarily reduce enforcement risk while the market evolves. The move comes as prediction markets have seen significant growth, with platforms like Kalshi and Polymarket recording billions in trading volume.

(Source：Cointelegraph)