The CFTC submitted a proposal on event contracts to the White House Office of Management and Budget, beginning a formal rulemaking process, according to the report. The proposal has not been made public. The report says the agency is considering how prediction markets should be supervised as financial products.
Formal rules could determine the compliance obligations for prediction-market platforms.
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It was reported that Judge Katherine Menendez blocked Minnesota’s planned ban on most event contracts. Former senator Chris Dodd disputed the ruling’s interpretation of a rule he said should prohibit sports contracts.
The Commodity Futures Trading Commission’s Division of Market Oversight issued an advisory on self-certifications for series of event contracts. The division said broad template submissions can make it harder to assess whether required information and analysis have been provided, and clarified when related contracts may be certified as a class or submitted for approval.
OG, Crypto.com’s event-contract platform, sued Washington’s attorney general and gambling commissioners. It seeks declaratory and injunctive relief, arguing the state cannot regulate its federally approved contracts.
A US House Agriculture subcommittee convened a hearing on Tuesday on market integrity for sports derivative contracts. It was the first such hearing since members of Congress introduced more than a dozen proposed bills seeking guardrails on the sector. Representatives of the American Gaming Association and the Indian Gaming Association testified that states and tribal nations are losing millions in revenue to prediction markets.
It was reported that Wisconsin Elections Commission warned election gambling could jeopardise residents’ voting rights. The notice drew opposition from two major prediction-market platforms.