The U.S. Commodity Futures Trading Commission issues guidance and preliminary rules regarding prediction markets

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Odaily Planet Daily reports that the U.S. Commodity Futures Trading Commission (CFTC) Division of Market Oversight has issued guidance and preliminary rules regarding prediction markets, providing direction for the listing and trading of event contracts. The announcement states that as prediction markets rapidly develop, the CFTC encourages innovation and growth while reminding designated contract markets (DCMs) to comply with the Commodity Exchange Act (CEA) and related regulations, including CEA Section 5(d), Part 38, DCM core principles 3 and Appendix C guidelines, as well as product submission requirements. The guidance specifically highlights the applicable details for sports-related event contracts and calls on frontline regulators to take proactive measures to ensure markets remain compliant while fostering innovation.

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