The proposal distinguishes these financial instruments from traditional gambling, following a separate interim final rule that excludes qualifying casino and sportsbook wagers from the swap definition. That exclusion, which takes effect upon publication in the Federal Register, leaves those products under state regulation. By explicitly denying this exclusion to exchange-traded event contracts, the CFTC intends to resolve existing ambiguity regarding its federal oversight of prediction markets.
Tuesday, October 20, 2026
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CFTC Proposes Swap Rule to Claim Exclusive Prediction Market Oversight
US Politics11 days ago
The Commodity Exchange Act would provide the Commodity Futures Trading Commission with exclusive jurisdiction over prediction markets if a new proposal to define event contracts as swaps is adopted. This rulemaking, currently open for public comment, covers contracts tied to sports, politics, weather, and cultural events. Chairman Michael Selig stated these derivatives are used daily by Americans to hedge risks and speculate, and the agency says the shift to formalize its authority would not change existing obligations for traders or exchanges.
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