📰 CFTC seeks to define event contracts as swaps amid prediction market fight
The US Commodity Futures Trading Commission (CFTC) is seeking to clarify the definition of a "swap" to assert its exclusive federal jurisdiction over event contracts in regulated prediction markets, amid a jurisdictional dispute with state gambling regulators. The CFTC has proposed a rule to expand the definition of "swap" to include event contracts while excluding casino-style gambling products, which is currently under review. This classification is crucial as it could solidify the CFTC's authority over platforms like Polymarket and Kalshi, which offer such contracts, despite state regulators' claims that these should fall under state gambling laws.
The US Commodity Futures Trading Commission (CFTC) is seeking to clarify the definition of a "swap" to assert its exclusive federal jurisdiction over event contracts in regulated prediction markets, amid a jurisdictional dispute with state gambling regulators. The CFTC has proposed a rule to expand the definition of "swap" to include event contracts while excluding casino-style gambling products, which is currently under review. This classification is crucial as it could solidify the CFTC's authority over platforms like Polymarket and Kalshi, which offer such contracts, despite state regulators' claims that these should fall under state gambling laws.
