CFTC to Develop New Rules for Prediction Markets

The U.S. Commodity Futures Trading Commission (CFTC) plans to establish new regulations for the prediction market industry, according to Bloomberg. According to PANews, CFTC Chairman Michael Selig announced the withdrawal of a 2024 proposal to ban sports and political prediction contracts, as well as a 2025 staff advisory on sports contracts. Selig emphasized the CFTC's commitment to supporting legitimate innovation in the market and reaffirmed its exclusive jurisdiction over commodity derivatives. Selig also mentioned that the CFTC will collaborate with the Securities and Exchange Commission (SEC) to formulate cryptocurrency regulations, aligning with ongoing digital asset legislation efforts in Congress. He noted that while regulatory bodies can implement rules, formal legislation remains necessary.