#cftcsubmitstwoeventcontractrulestowhitehouse 🚨 CFTC SENDS TWO PREDICTION-MARKET RULES TO WHITE HOUSE REVIEW
Washington is taking another major step toward defining how U.S. prediction markets should be regulated.
The CFTC submitted two event-contract regulatory actions to White House OIRA review on September 28 — and the approaches point in different directions.
📌 What’s being considered?
🔹 One proposal would clarify the definition of “swap” to include event contracts.
🔹 Another interim-final approach would exclude certain casino-style gambling products from the swap framework.
Why does this matter?
Prediction markets such as Kalshi and Polymarket are at the center of a broader legal battle over whether certain event contracts fall primarily under federal derivatives regulation or state gambling laws.
A September 25 appeals-court ruling involving Kalshi held that the contracts at issue were not swaps and allowed Ohio and Tennessee gambling laws to apply — adding another layer of uncertainty.
Meanwhile, prediction platforms are expanding into stock and corporate-event contracts, creating additional questions around the respective roles of the CFTC and SEC. Reuters reported that more than $220 million had been traded on Polymarket's equity-linked prediction markets.
⚠️ Important: OIRA review does not mean either approach is final. The regulatory process is still developing.
👀 The key catalyst: Which framework ultimately moves forward — and how courts and regulators define the boundary between derivatives and gambling.
$GOOGL $NVDA $SPX
#CFTC #PredictionMarkets #Kalshi #Polymarket #CryptoNews #Regulation #Markets
Washington is taking another major step toward defining how U.S. prediction markets should be regulated.
The CFTC submitted two event-contract regulatory actions to White House OIRA review on September 28 — and the approaches point in different directions.
📌 What’s being considered?
🔹 One proposal would clarify the definition of “swap” to include event contracts.
🔹 Another interim-final approach would exclude certain casino-style gambling products from the swap framework.
Why does this matter?
Prediction markets such as Kalshi and Polymarket are at the center of a broader legal battle over whether certain event contracts fall primarily under federal derivatives regulation or state gambling laws.
A September 25 appeals-court ruling involving Kalshi held that the contracts at issue were not swaps and allowed Ohio and Tennessee gambling laws to apply — adding another layer of uncertainty.
Meanwhile, prediction platforms are expanding into stock and corporate-event contracts, creating additional questions around the respective roles of the CFTC and SEC. Reuters reported that more than $220 million had been traded on Polymarket's equity-linked prediction markets.
⚠️ Important: OIRA review does not mean either approach is final. The regulatory process is still developing.
👀 The key catalyst: Which framework ultimately moves forward — and how courts and regulators define the boundary between derivatives and gambling.
$GOOGL $NVDA $SPX
#CFTC #PredictionMarkets #Kalshi #Polymarket #CryptoNews #Regulation #Markets
