CFTC Draws the Line Between Prediction Markets and Gambling in New Rules
Summary
The CFTC issued two measures clarifying its position on prediction markets: a proposed rule would classify event contracts tied to sports, politics, culture and weather as swaps under federal law, while an interim final rule excludes casino-style gambling and sportsbook wagers. The measures have 30-day comment periods, with the gambling exclusion effective upon publication. The move strengthens the agency’s claim of exclusive authority over platforms such as Kalshi and Polymarket amid lawsuits between states and operators, and a broader jurisdictional dispute that may reach the Supreme Court.
