Key facts
- NBA and CFTC signed a memorandum of understanding.
- Partnership aims to protect prediction market integrity and flag abuses.
- NBA joins MLB and NHL in similar agreements with the CFTC.
- CFTC is defining event contracts as "swaps".
- NFL is in a Supreme Court battle with Kalshi over prediction markets.
The National Basketball Association has entered into a memorandum of understanding with the Commodity Futures Trading Commission to safeguard the integrity of prediction markets. This move aligns the NBA with the Major League Baseball and the National Hockey League, which have similar agreements with the regulator. The partnership aims to facilitate information sharing and identify potential abuses such as insider trading and fraud. The agreement comes at a time when the CFTC is asserting its authority over event contracts, defining them as "swaps," while the National Football League is engaged in a legal dispute with Kalshi over the regulation of these markets, a case that has reached the Supreme Court. The NBA's decision to partner with the CFTC contrasts with the NFL's more adversarial approach.