CFTC waives swap reporting rules for prediction markets in no-action letter

The CFTC issued a no-action letter exempting DCM-based prediction market platforms from swap data reporting and record-keeping requirements. The measure applies to platforms such as Kalshi and Polymarket and treats standardized, exchange-based prediction markets more like futures products than swaps. Market observers said the change could lower operating costs and reduce regulatory uncertainty. The move comes as the CFTC has reportedly been re-emphasizing that prediction markets fall under federal regulation amid disputes with several state governments.