CFTC Sends White House New Rules to Cement Its Grip on Prediction Markets
The CFTC is seeking to solidify control over prediction markets by rewriting the legal definition of “swap” to cover event contracts like those traded on Kalshi and Polymarket. It sent two proposals to the White House for review: one would explicitly define swaps to include event contracts and go out for public comment; the other would exclude “casino-style gambling products” and could take effect immediately if approved. The move is aimed at resolving a jurisdictional battle, since treating event contracts as swaps would place them under CFTC oversight and outside state gambling regulators’ reach. The effort comes amid conflicting court rulings, state lawsuits against prediction-market platforms, and a pending Supreme Court review. It also fits a broader pattern of the CFTC pressing ahead with rulemaking on crypto and prediction markets while scrutiny of these products continues to grow.
