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US lawmakers question CFTC oversight of sports prediction contracts

Regulation

Members of the US House Agriculture Committee questioned the Commodity Futures Trading Commission’s authority and capacity to oversee sports prediction contracts at a 11 December hearing on the agency’s reauthorisation. Former CFTC officials said the regulator lacked resources for an expanded remit, while lawmakers raised concerns that the contracts resemble sports betting and may bypass state rules.

The debate could affect whether sports prediction contracts face federal commodities oversight or state sports betting rules.

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Prediction market operators withdraw sports contracts across three US states

Coinbase agreed to end Michigan sports contract activity by 10 October. The agreement requires Coinbase to close outstanding positions while its appeal continues. It was also reported that Webull, Gemini and ProphetX exited Connecticut, while PrizePicks paused new sports prediction entries in Missouri but kept existing entries active.

Under a deal announced Wednesday, Coinbase will halt new sports event contracts in Michigan by Oct. 10, with every open position to be wound down by that date as well, the Michigan Gaming Control Board said in a press release. While the appeal proceeds, the company keeps its legal arguments intact, and Michigan pledged to hold off on enforcement so long as Coinbase stays within the restrictions.

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