CFTC Pulls Proposal Banning Sports Prediction Markets

Cointelegraph reports the US Commodity Futures Trading Commission has withdrawn a Biden administration-era 2024 notice of proposed rulemaking that sought to ban event contracts for sports, politics and war, among other topics, classifying them as "contrary to the public interest." CFTC chair Mike Selig said the proposal "reflected the prior administration’s frolic into merit regulation with an outright prohibition on political contracts ahead of the 2024 presidential election," and that the Commission "doesn't plan to issue final rules on the proposal." He said the agency will "advance a new rulemaking grounded in a rational and coherent interpretation of the Commodity Exchange Act that promotes responsible innovation in our derivatives markets in line with Congressional intent." The move affects prediction markets such as Polymarket and Kalshi and platforms including offerings from Coinbase and Crypto.com, which have faced state legal challenges alleging unlicensed gambling while arguing they are regulated exclusively by the CFTC.

United States