#cftcsubmitstwoeventcontractrulestowhitehouse CFTC submits rules to OMB redefining prediction-market event
contracts as swaps
The Commodity Futures Trading Commission sent
two related regulatory proposals to White House review this week, seeking to formally classify event
contracts—binary bets on measurable outcomes like sports results and elections—as "swaps" under federal jurisdiction and explicitly exclude them from state gambling regulation.
The move directly counters recent federal court rulings. The Sixth and Eighth Circuit Courts of Appeals both ruled that sports contracts on Kalshi are not swaps and fall under state gambling authority.$Q $AR $STO
contracts as swaps
The Commodity Futures Trading Commission sent
two related regulatory proposals to White House review this week, seeking to formally classify event
contracts—binary bets on measurable outcomes like sports results and elections—as "swaps" under federal jurisdiction and explicitly exclude them from state gambling regulation.
The move directly counters recent federal court rulings. The Sixth and Eighth Circuit Courts of Appeals both ruled that sports contracts on Kalshi are not swaps and fall under state gambling authority.$Q $AR $STO