CFTC Consultations

What Changed

• This ANPRM proposes no immediate changes, as it is an early-stage consultation seeking input on:
• Application of Commodity Exchange Act (CEA) core principles and existing CFTC regulations to prediction markets.
• Criteria for prohibiting event contracts deemed contrary to the public interest (e.g., potentially sports, politics, or sensitive topics like government employee outcomes).
• Cost-benefit analyses for regulating prediction markets. It builds on prior actions, including withdrawal of a 2024 proposed ban on certain event contracts and a 2025 staff advisory on sports-related...

Suggested Considerations

• Submit comments: Affected parties should prepare and file written comments within 45 days via the CFTC Public Comments Portal, addressing ANPRM questions on CEA principles, prohibited contracts, and costs/benefits.
• Monitor developments: Track Federal Register publication, related litigation (e.g., state challenges to CFTC jurisdiction), and CFTC Enforcement Division advisories. (https://www.cftc.gov/PressRoom/PressReleases/9183-26)

Key Dates

References

• [1] bakermckenzie.com/en/insight/publications/2026/02/united-...
• [2] paulweiss.com/insights/client-memos/cftc-chairman-outline...
• [3] corporatecomplianceinsights.com/cftc-withdraws-proposed-r...
• [4] quickreads.ext.katten.com/post/102mkjy/know-the-outcome-d...
• [5] cftc.gov/PressRoom/PressReleases/9183-26
• [6] cftc.gov/PressRoom/PressReleases/9185-26
• [7] next.io/news/regulation/cftc-chief-signals-imminent-predi...

What Changed

• - Withdrawal of the June 10, 2024, Notice of Proposed Rulemaking titled “Event Contracts,” which proposed prohibiting political event contracts as contrary to public interest (e.g., akin to war or...
• Withdrawal of CFTC Staff Letter 25-36 (issued Sept. 30, 2025), a Staff Advisory cautioning designated contract markets (DCMs) against offering sports event contracts due to litigation risks and state...
• Commitment to new event contracts rulemaking based on a "rational and coherent interpretation of the Commodity Exchange Act" to promote innovation, with clear standards for prediction markets; CFTC...

Suggested Considerations

• Review and disregard prior compliance programs built around the 2024 proposal or 2025 advisory (e.g., cease preparations for prohibiting political/sports contracts).
• Monitor CFTC docket for new event contracts rulemaking notice and provide comments during any future consultation period.
• Assess current offerings for event contracts under existing Commodity Exchange Act prohibitions (e.g., gaming, manipulation); document reliance on CFTC's innovation stance pending new rules.
• Evaluate litigation exposure, especially state gaming regulator actions; prepare for potential CFTC intervention asserting exclusive jurisdiction.
• No immediate prohibitions lifted or mandates imposed—continue operating within current CEA framework (e.g., anti-fraud, market integrity).

Key Dates

References

• [1] cftc.gov/PressRoom/PressReleases/9179-26
• [2] corporatecomplianceinsights.com/cftc-withdraws-proposed-r...
• [3] en.bloomingbit.io/feed/news/105447
• [4] binance.com/en-KZ/square/post/02-05-2026-cftc-withdraws-p...
• [5] cohenmilstein.com/cftc-priorities-modernization-harmoniza...
• [6] zwillgen.com/gaming/cftc-signals-new-era-for-prediction-m...
• [7] cftc.gov