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CFTC to Write New Rules for Prediction Markets, Chair Says
- On Thursday, Commodity Futures Trading Commission Chair Michael S. Selig directed staff to draft clear rules for prediction markets and withdraw the 2024 proposed rule banning sports and political contracts.
- Prediction-Market platforms have grown rapidly, offering event contracts across politics, markets, culture and live sports, which has increased legal scrutiny as Kalshi and Polymarket face lawsuits in multiple states.
- Pointing to a staff memo, Selig noted `While the advisory was issued at the staff level with the intent of bringing awareness to the litigation`, but it `has instead contributed to uncertainty in our markets`, and pledged to establish clearer standards for event contracts.
- The Commission signaled it would defend its exclusive jurisdiction over commodity derivatives and coordinate with the SEC on crypto while reevaluating involvement in federal district and circuit court cases Thursday.
- Industry groups said the withdrawal and rulemaking will foster market clarity as the Coalition for Prediction Markets welcomed it, while tribal nations and state regulators press litigation over gambling jurisdiction and youth access.
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CFTC Chair Michael Selig Says 'It's Time For Clear Rules' For Prediction Markets, Directs Staff To Drop Proposal Banning Sports, Politics Contracts - Coinbase Global (NASDAQ:COIN)
Commodity Futures Trading Commission Chair Michael S. Selig said Thursday that the regulator will draft “clear rules” for prediction markets and withdraw a proposal that prohibits sports and politics-related contracts. CFTC Announces Major Policy Shift Selig said the commission is withdrawing previous proposals and advisories that have led to market uncertainty. “It is time for clear rules and a clear understanding that the CFTC supports lawful …
·New York, United States
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Total News Sources17
Leaning Left3Leaning Right0Center3Last UpdatedBias Distribution50% Left, 50% Center
Bias Distribution
- 50% of the sources lean Left, 50% of the sources are Center
50% Center
L 50%
C 50%
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