CFTC Chair Backs Blockchain-Powered Prediction Markets Despite Pushback

CFTC Chair Michael Selig expressed strong support for prediction markets utilizing blockchain technology, calling them "truth machines" capable of generating reliable signals about future events, often surpassing traditional opinion polls. This endorsement comes amid significant regulatory pushback, as several US states, including Nevada, Massachusetts, and Connecticut, have taken legal action against platforms like Polymarket and Kalshi, alleging their event contracts constitute unlicensed gambling.

Selig stated that when participants back their views with capital, these markets foster accountability and transparency. In response to the regulatory uncertainty, the CFTC plans to issue clearer rules for listing and trading event contracts under its existing derivatives framework. Furthermore, Selig indicated the CFTC is working on a clearer classification framework for crypto assets and guidance for developers of non-custodial software, emphasizing a preference for clear rulemaking over an enforcement-first policy.

(Source：Cointelegraph)