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U.S. CFTC Seeks Event Contract Definitions that May Defy States' Gambling Claims
The agency seeks to expand federal oversight of event contracts as courts split over whether sports bets on prediction platforms are swaps.
- The Commodity Futures Trading Commission sent two rules to the White House's Office of Management and Budget on September 28, seeking to redefine event contracts as swaps and expand federal oversight of prediction markets.
- Recent court rulings that sports bets on Kalshi are not swaps prompted the agency to defend its jurisdiction against state gambling regulations across at least nine states, including New Jersey, Ohio, and Tennessee.
- One proposed rule would classify event contracts as swaps, while an "interim final rule" would exclude "casino-style gambling products" from the definition, clarifying the CFTC's approach to these binary-outcome contracts.
- OMB officials are currently reviewing both submissions, a final procedural step before the CFTC can publish the rules in the Federal Register for public comment and potential implementation.
- Beyond prediction markets, CFTC Chairman Michael Selig submitted a separate "prerule" focused on crypto regulations to the White House, while President Donald Trump has left him as the commission's sole member.
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18 Articles
CFTC seeks to define event contracts as swaps amid prediction market fight
The classification could assist the CFTC’s claim that it has exclusive federal jurisdiction over event contracts offered on regulated prediction markets. The US Commodity Futures Trading Commission is seeking to clarify the definition of a “swap” amid a jurisdictional fight with state gambling regulators over prediction markets. An Office of Information and Regulatory Affairs docket […]
The U.S. Commodity Futures Commission (CFTC) has sent two regulatory proposals to the White House concerning prediction markets such as Polymarket and Kalshi. This move addresses an ongoing dispute between the federal agency and states over the regulation of these platforms.
Coverage Details
Total News Sources18
Leaning Left0Leaning Right0Center4Last UpdatedBias Distribution100% Center
Bias Distribution
- 100% of the sources are Center
100% Center
C 100%
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