Exploring New Regulations for Prediction Markets: CFTC Seeks Feedback on Event Contracts
The Commodity Futures Trading Commission has released an Advanced Notice of Proposed Rulemaking to seek feedback on potential changes or new regulations for event contracts traded on prediction markets. Chairman Michael S. Selig emphasized the importance of responsible innovation in derivatives markets and the need for new rulemaking based on a rational interpretation of the Commodity Exchange Act. The notice seeks input on various areas, such as applying statutory core principles and regulations to prediction markets and considering the types of event contracts that may be prohibited. The Commission will use the feedback to inform potential future actions, including rulemaking.
Interested parties have 45 days from the notice's publication in the Federal Register to submit written comments through the CFTC's Public Comments Portal. The goal is to gather insights and perspectives from the public to guide the Commission's approach to prediction markets. The CFTC aims to exercise its exclusive jurisdiction over prediction markets and ensure that any new regulations are in the public interest and consider cost-benefit considerations. The feedback received will play a crucial role in shaping the Commission's future actions in this area.
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