CFTC Chair Michael Selig said he directed staff to withdraw a 2024 proposal that would prohibit political and sports-related event contracts. He also said the agency would reverse its 2025 staff advisory on sports contracts and draft new rules for prediction markets.
The planned withdrawal and rulemaking could change the federal framework for operators offering event contracts.
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US Representative Bryan Steil introduced a proposal to bar members of Congress and their families from trading political event contracts, he said on 18 June. The bill proposes a fine of $2,000 or 10% of the transaction value, whichever is greater, plus net trading profits; it requires Senate passage and could be tied to broader stock-trading legislation.
The CFTC said on 4 February 2026 that it had withdrawn its proposed 2024 Event Contracts rule and a 2025 staff advisory on sports-related event contracts. The commission said it would reconsider the issue in light of state regulatory actions and litigation; any return to rulemaking would begin with a new proposal.
Louisiana senator Katrina Jackson-Andrews withdrew Senate Bill 354 after a fiscal note projected that banning prop and micro bets could reduce state revenue. The analysis estimated up to $21 million in annual General Fund losses, alongside another $17 million for other programmes; prop and micro bets account for about 40% of online wagers and 13% of retail bets, according to the Louisiana Gaming Control Board.
Minnesota’s proposed ban on certain prediction-market event contracts was awaiting Governor Tim Walz’s signature, according to the report. The available text gives no further details on the measure or its scope.
Crypto.com and Novig have sued Missouri officials in federal court to stop the state enforcing its sports betting laws against their sports event contracts. The suits were filed on Friday as 30-day deadlines expired for six prediction market operators ordered by Attorney General Catherine Hanaway to stop offering the contracts or obtain state authorisation. Crypto.com argues the Commodity Exchange Act gives the CFTC exclusive jurisdiction.
Crypto.com and Novig have taken Missouri officials to federal court in an effort to block enforcement of the state's sports betting laws against their sports event contracts. The suits arrived on Friday, the same day that 30-day deadlines ran out for six prediction market operators told by Missouri Attorney General Catherine Hanaway to halt sports event contracts or secure state authorisation.