CFTC Sends Bitnomial No-Action Letter, Eases Reporting Requirements
The CFTC issued a no-action letter to Bitnomial, easing reporting for event contracts and prediction markets.Summary
The US financial regulator, the Commodity Futures Trading Commission (CFTC), granted a no-action letter to the crypto derivatives exchange Bitnomial, allowing it to offer event contracts and prediction markets. This letter exempts Bitnomial from strict reporting requirements for asset swaps, which are impractical for high-volume prediction markets. However, Bitnomial must maintain transparent consumer-facing data, including timestamps and sales data, and provide information to the CFTC upon request. Furthermore, all positions must be fully collateralized, meaning they cannot be leveraged, ensuring 1:1 backing to maintain liquidity. This regulatory move signals growing acceptance of prediction markets by US regulators as blockchain technology facilitates new financial applications. The article also notes the increasing prominence of prediction markets in the US, citing recent major investments in Polymarket by ICE and Coinbase's acquisition of a prediction market startup.
(Source：Cointelegraph)