U.S. regulator declares do-over on prediction markets, throwing out Biden era 'frolic'

The U.S. Commodity Futures Trading Commission (CFTC), under new Chairman Mike Selig, is formally reversing prior policy by withdrawing a proposed 2024 rule that sought to ban contracts based on political event outcomes, labeling them contrary to public interest. Selig stated the previous proposal represented the prior administration's "frolic into merit regulation." This action also scraps a confusing September advisory on contract markets. The move, following signals from Selig, paves the way for new rulemaking grounded in a "rational and coherent interpretation" of the Commodity Exchange Act to promote responsible innovation. This shift aligns with the Trump administration's more favorable stance toward prediction markets like Kalshi and Polymarket, potentially encouraging further industry interest.

(Source：CoinDesk)