CFTC seeks to define event contracts as swaps in prediction market fight
CFTC proposes new rule for event contracts
The US Commodity Futures Trading Commission (CFTC) has submitted a proposed rule that would expand the definition of a "swap" to include event contracts, the products traded on prediction markets.
The proposal is part of a dispute with state gambling regulators over prediction markets. An Office of Information and Regulatory Affairs docket shows the proposed rule and a separate interim final rule that would exclude casino-style gambling products are both under review.
Why the classification matters
The CFTC has argued that federal law gives it exclusive authority over swaps traded on its regulated exchanges, including products offered by Polymarket and Kalshi.
US state regulators have disputed that position, particularly for sports event contracts. They say those products are subject to state gambling laws.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.