U.S. CFTC seeks event contract definitions that may defy states' gambling claims
Summary
The CFTC has sent two prediction-market rules to the White House for review: one would define event contracts as swaps, while another would exclude casino-style products from the swap category. The moves could bolster the agency’s claim to exclusive federal authority over platforms such as Kalshi and weaken states’ arguments that sports contracts are gambling. The proposals follow conflicting federal appeals court rulings, including recent decisions finding Kalshi sports contracts are not swaps. The rules’ text has not been disclosed; OMB review is generally a step before public comment, though an interim final rule could take effect immediately. The CFTC is also pursuing a separate crypto-regulation prerule.
