Key facts
- The CFTC is proposing new rules for prediction markets.
- The proposed rules could ban bets on sensitive topics such as war and terrorism.
- The agency is seeking public comment on event contract derivatives.
- President Trump believes the CFTC should have exclusive authority over prediction markets.
The U.S. Commodity Futures Trading Commission (CFTC) has proposed new draft regulations for prediction markets, aiming to establish federal oversight and address concerns about market integrity and potential fraud. The proposed rules could lead to bans on wagers concerning sensitive topics such as war, terrorism, assassinations, and player injuries. CFTC Chair Michael Selig stated the regulations aim to protect market integrity while allowing for responsible innovation. The agency is soliciting public comment on event contract derivatives, including whether wagering on criminal activity and violence should be prohibited. The proposal follows instances of alleged insider trading on these platforms, and some political campaign staffers reportedly use them to bet on their own races. President Donald Trump has previously stated that the CFTC should hold exclusive authority over prediction markets. The proposal is subject to a 45-day notice-and-comment period.