The CFTC Has Sent Prediction Market Rules to the White House. States Are Still in Court
The agency seeks to expand federal oversight of event contracts as courts split over whether sports bets on prediction platforms are swaps.
- The Commodity Futures Trading Commission sent two new rules to the White House's Office of Management and Budget on September 28, seeking to redefine event contracts as swaps and solidify federal oversight of prediction markets.
- This action follows recent legal setbacks where appeals courts ruled sports bets on Kalshi are not swaps, prompting the agency to defend its jurisdiction against state gambling regulations in at least nine states including New Jersey, Ohio, and Tennessee.
- One proposed rule would classify event contracts as swaps, while an "interim final rule" would exclude "casino-style gambling products" from the definition, clarifying the CFTC's regulatory approach.
- OMB officials are currently reviewing both submissions, a final step before the CFTC can publish the rules in the Federal Register for public comment and potential implementation.
- Beyond prediction markets, CFTC Chairman Michael Selig submitted a separate "prerule" to the White House focused on crypto regulations, as President Donald Trump has left him as the commission's sole member.
21 Articles
21 Articles
The CFTC has sent prediction market rules to the White House. States are still in court
Two CFTC event-contract actions reached White House review on September 28. One would define swaps to include event contracts. The other, labeled an interim final rule, would exclude casino-style gambling products. Five days earlier, a federal appeals court held that…
CFTC seeks to define event contracts as swaps amid prediction market fight
The classification could assist the CFTC’s claim that it has exclusive federal jurisdiction over event contracts offered on regulated prediction markets. The US Commodity Futures Trading Commission is seeking to clarify the definition of a “swap” amid a jurisdictional fight with state gambling regulators over prediction markets. An Office of Information and Regulatory Affairs docket […]
CFTC Swap Reclassification Puts Prediction Market Operators on Edge
The CFTC wants to call event contracts swaps. That’s the short version. The longer version is messier, and the fallout… Read the original on CFTC’s Move to Classify Event Contracts as Swaps Threatens Prediction Markets’ Future. For more crypto news and analysis, visit TheCurrencyAnalytics.com.
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