CFTC Proposes First U.S. Prediction Market Rule for Public-Interest Reviews
The Commodity Futures Trading Commission issued a notice of proposed rulemaking on Wednesday that outlines a process for reviewing whether event contracts meet the federal public-interest standard. The proposal covers contracts on prediction market platforms including those operated by Kalshi, Polymarket, and Crypto.com.
CoinDeskThe Commodity Futures Trading Commission issued a notice of proposed rulemaking on Wednesday that outlines a process for reviewing whether event contracts meet the federal public-interest standard. The rule would establish a 90-day review window for individual contracts. Federal law already bars contracts tied to war, terrorism, assassination, illegal activity, or gaming.
The agency has approved sports-betting contracts in recent years and signed data-sharing agreements with professional sports leagues. Exchanges that list the contracts serve as the first line of review for legality and market integrity, the CFTC has stated.
Chairman Mike Selig said the proposal supplies a framework to identify contracts Congress directed the agency to scrutinize while allowing legitimate markets to proceed. The statement added that the CFTC will protect market integrity without blocking responsible innovation.
President Donald Trump posted on social media that other countries are pursuing this form of financial market and that the United States wants to remain at the top.
