CFTC Grants No-Action Relief to Prediction Markets Amid Regulatory Scrutiny

The US Commodity Futures Trading Commission has extended no-action relief to four prediction market operators—Polymarket US, LedgerX, PredictIt, and Gemini Titan—effectively reducing immediate enforcement risks. The reprieve comes with strict conditions: platforms must fully collateralize contracts and publish transparent time-and-sales data.

Regulators emphasized the narrow scope of the relief, aligning it with existing treatment for designated contract markets. The MOVE signals a pragmatic approach as prediction markets navigate compliance frameworks amid surging activity. Collateral requirements now mandate 100% reserve coverage for all positions, a safeguard against systemic risk.

While not a legal overhaul, the CFTC's stance reflects growing institutional recognition of prediction markets' role in price discovery. The decision avoids disruptive enforcement actions while maintaining pressure for operational transparency—a balancing act characteristic of maturing crypto derivatives oversight.