CFTC says prediction-market contracts fall under derivatives rules
The CFTC says event-based prediction-market contracts are swaps subject to federal derivatives oversight, including insider-trading rules. Enforcement director David Miller said the agency would pursue cases involving misappropriated information, not minor conduct, and plans to encourage company cooperation, including possible penalty reductions.
Prediction-market participants face federal insider-trading standards rather than state gambling rules, according to the CFTC’s position.