Prediction markets get first U.S. rule proposal as CFTC pursues contract reviews
The CFTC proposed its first prediction-markets rule, aiming to create a clear process for deciding when event contracts violate federal bans on products tied to war, terrorism, assassination, illegal activity, or gaming. The agency, which oversees derivatives exchanges used by Kalshi, Polymarket, and Crypto.com, says it wants to protect market integrity while allowing legitimate innovation. Chairman Mike Selig has made prediction markets a priority and described the proposal as a durable, transparent framework that lets lawful contracts proceed. The rule would consider a 90-day review process for public-interest determinations on individual contracts. The move comes as the CFTC has increasingly treated sports betting as consistent with the public interest, and as President Trump has voiced support for keeping the U.S. at the forefront of this financial market.
