U.S. CFTC Proposes New Rules for Prediction Markets to Clarify Industry Regulatory Boundaries and Operational Rules

According to market sources, the U.S. Commodity Futures Trading Commission (CFTC) is proposing new rules for prediction markets, aimed at clarifying the access standards for event contracts, tradable categories, and operational boundaries, thereby establishing a complete federal regulatory framework for the industry.

The new rules will focus on regulating the types of event contracts that prediction platforms, including Kalshi, are allowed to list, and will provide clearer boundaries for sports-related wagering, while also preventing situations in which a single participant could exert excessive influence over the outcome.

Notably, there has been significant disagreement between U.S. state and federal levels regarding the regulatory jurisdiction over prediction markets. Some states seek the right to regulate prediction platforms independently, while the CFTC insists that it has exclusive regulatory authority—leading to multiple legal disputes between the two sides.

In addition, regulators are continuing to keep a close watch on disorderly practices generated by prediction markets, such as insider trading and illegal wagering. To this end, the CFTC has also launched multiple related investigations, with the goal of advancing the implementation of the rules while strengthening market compliance and control.

At present, the Office of Information and Regulatory Affairs (OIRA) under the Office of Management and Budget (OMB) has already received the prediction market proposed rules submitted by the CFTC, and the related proposal is currently under review.

Although this new rules proposal is still in the review stage, this series of measures indicates that the regulatory framework for prediction markets is being reshaped and may have a profound impact on the industry’s future development.

#CFTC # Regulatory New Rules