CFTC Chair Opens Prediction Markets Rulemaking to Public Comment

CFTC Chair Michael Selig has proposed a rule to amend or create new regulations for event contracts on prediction markets like Kalshi and Polymarket. The CFTC issued a staff advisory classifying these contracts as a “financial asset class” and is seeking public comment on applying the Commodity Exchange Act (CEA) to these markets. Selig emphasized the CFTC’s exclusive jurisdiction over prediction markets, responding to state-level lawsuits against platforms like Kalshi and Polymarket. However, an Ohio judge recently challenged this claim, stating Kalshi failed to demonstrate the CEA preempts Ohio’s sports gambling laws. With the CFTC currently operating with only Selig as commissioner, he potentially has the sole authority to approve the proposal after the public comment period, which will last 45 days after publication in the Federal Register.

(Source：Cointelegraph)