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CFTC proposes limits on prediction-market contracts tied to sensitive events

Regulation

The CFTC proposed stricter limits on event contracts involving activities prohibited under federal law, including war, terrorism and assassination. The commission opened a 45-day public comment period; it said the proposal would establish a review process before contracts reach the market and would not impose immediate bans.

Prediction-market platforms may need to account for proposed pre-market review of contracts involving sensitive events.

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Regulation

CFTC proposes treating event contracts as swaps and excludes gambling

The US Commodity Futures Trading Commission has proposed classifying event contracts linked to cultural events, weather, politics and sports as swaps, while an interim final rule excludes casino-style gambling products from that definition. Both measures carry 30-day comment periods, and the interim rule takes effect upon publication in the Federal Register, the CFTC said.

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