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Better Markets urges CFTC to withdraw prediction-market proposal

Regulation

Better Markets has urged the US Commodity Futures Trading Commission to withdraw its proposed prediction-market rule in a comment letter. The organisation argues the proposal could permit gambling through event contracts and says the CFTC's definition of gaming does not reflect the intent of the 2010 Dodd-Frank Act.

The dispute raises questions about whether the proposed rule could permit gambling through event contracts and align with Dodd-Frank’s intent.

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Regulation

CFTC gives prediction markets 30 days to address state access blocks

The CFTC issued guidance saying state-based geographic restrictions generally conflict with impartial-access requirements for designated contract markets in the United States. It gave exchanges 30 days to remove conflicting blocks or explain to the Division of Market Oversight, with supporting evidence, why compliance is not feasible. The same framework applies to intermediaries and other entities providing market access.

The CFTC said state-based geographic restrictions on prediction markets are generally inconsistent with its impartial access rules, and gave operators and exchanges 30 days to lift them or explain why they cannot. The agency issued the guidance on Thursday as a formal interpretation of its impartial access requirements for designated contract markets. It said location alone should not be used to deny access to eligible participants within the United States.

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