According to the head of the derivatives authority, businesses like Kalshi and PredictIt will have “regulatory certainty” in the near future.
The chairman of the U.S. Commodity Futures Trading Commission tells a Florida audience that his organization is working on new market prediction regulations.
Platforms that let consumers purchase basic contracts anticipating the result of real-life events have been the target of a legal dispute by the CFTC.
In an effort to set new rules for prediction markets, U.S. Commodity Futures Trading Commission Chairman Rostin Behnam said that his agency would be proposing a rule in the coming months.
Behnam stated at a Futures Industry Association event in Florida on Tuesday that the CFTC is planning to modify its regulations regarding the handling of specific event contracts. The goal is to clarify regulations for both exchanges looking to list these contracts and market participants.
This declaration is the culmination of years of back-and-forth between the CFTC and corporations over the establishment of a regulated, lawful market for consumers in the United States.
Users of prediction sites like Kalshi, PredictIt, Polymarket, and Zeitgeist may purchase contracts based on the consequences of actual events, such as policies and elections.
The CFTC has consistently blocked these businesses’ progress; for instance, they claimed that Kalshi’s proposed contracts constituted illegal gambling. However, the business was holding out hope that the courts would ultimately rule in their favor.
Behnam did not elaborate on the proposal or the agency’s intentions in his short comments. Tuesday was also the day he spoke about the agency’s problems with crypto innovation. After former FTX subsidiary LedgerX sought to eliminate the intermediary in cryptocurrency futures, the commission members disagreed on how to effectively handle the movement toward disintermediation.
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