Prediction markets get tailored U.S. guidance from former foe CFTC
The CFTC issued new guidance and proposed rules for U.S. prediction market operations, reversing its previous adversarial stance.Summary
The Commodity Futures Trading Commission (CFTC), which previously litigated against event contracts platforms, has reversed course by issuing initial non-binding guidance and proposing permanent rules for U.S. prediction markets like Polymarket and Kalshi. Chairman Mike Selig is driving this shift, asserting the CFTC's exclusive jurisdiction over these markets, even against state regulators claiming authority over sports-related bets. The agency released an advanced notice of proposed rulemaking, seeking public comment on how to proceed with a binding rule process grounded in the Commodity Exchange Act. The guidance advises regulated Designated Contract Markets (DCMs) to only handle contracts not easily manipulated and emphasizes their legal responsibility to police market manipulation. This move formalizes oversight for the growing sector, which the CFTC views as a proven source of reliable information.
(Source：CoinDesk)