Key facts
- The CFTC has proposed new rules that could allow it to prohibit certain prediction market contracts.
- These contracts are those deemed most susceptible to manipulation or misuse.
- Experts suggest that one category of particularly vulnerable prediction market contracts has been omitted from the proposal.
- The proposal aims to clamp down on contracts decided by individuals' actions.
A proposed rulemaking by the US Commodities and Futures Trading Commission (CFTC) could grant the agency the power to prohibit certain prediction market contracts that are particularly vulnerable to manipulation or misuse. However, experts who have provided comments to the CFTC believe that one of the most susceptible categories of these event contracts has been omitted from the proposed regulations. The proposal aims to regulate contracts that are decided by individuals' actions, but the omission of a specific vulnerable category raises concerns among market observers.