#cftcsubmitstwoeventcontractrulestowhitehouse
đ¨ The CFTC has sent two competing event-contract rules to the White House for review.
Both proposals entered OIRA review on September 28, but they take different approaches to how event contracts should be treated under the federal derivatives framework. One would exclude certain âcasino-style gambling productsâ from the definition of swaps, while the other would include event contracts as swaps.
Why does this matter?
Prediction markets such as Kalshi and Polymarket are at the center of a broader legal fight over whether event contracts fall primarily under federal derivatives oversight or state gambling laws. A recent Sixth Circuit ruling found that states could regulate Kalshi under gambling laws, adding to the existing split between federal appeals courts.
At the same time, prediction markets are expanding toward financial products, including contracts tied to stocks and corporate events. That is raising additional questions about the respective roles of the CFTC and SEC.
For traders, the key thing to watch is how the White House review shapes the regulatory framework.
Prediction markets are moving closer to traditional financeâand regulators are now deciding exactly how these contracts fit into the system.
$GOOGL.US | $SPCX.US | $NVDA.US
#PredictionMarkets #CFTC #CryptoRegulation #CryptoNews #trading
đ¨ The CFTC has sent two competing event-contract rules to the White House for review.
Both proposals entered OIRA review on September 28, but they take different approaches to how event contracts should be treated under the federal derivatives framework. One would exclude certain âcasino-style gambling productsâ from the definition of swaps, while the other would include event contracts as swaps.
Why does this matter?
Prediction markets such as Kalshi and Polymarket are at the center of a broader legal fight over whether event contracts fall primarily under federal derivatives oversight or state gambling laws. A recent Sixth Circuit ruling found that states could regulate Kalshi under gambling laws, adding to the existing split between federal appeals courts.
At the same time, prediction markets are expanding toward financial products, including contracts tied to stocks and corporate events. That is raising additional questions about the respective roles of the CFTC and SEC.
For traders, the key thing to watch is how the White House review shapes the regulatory framework.
Prediction markets are moving closer to traditional financeâand regulators are now deciding exactly how these contracts fit into the system.
$GOOGL.US | $SPCX.US | $NVDA.US
#PredictionMarkets #CFTC #CryptoRegulation #CryptoNews #trading
