CFTC Prepares New Rulebook for Prediction Markets Including Crypto Platforms
The U.S. Commodity Futures Trading Commission (CFTC) is drafting a new regulatory framework for prediction markets, targeting platforms like Polymarket and Kalshi that handle billions in event-based trading. Chairman Michael Selig emphasized the need for clear standards to foster innovation while maintaining oversight.
Prediction markets have gained traction as crypto-native and regulated platforms compete for traders seeking 24/7 exposure to geopolitical and cultural events. Polymarket has emerged as a liquidity hub, with select markets processing hundreds of millions in volume.
The CFTC's MOVE signals growing institutional recognition of event contracts as a financial instrument category. Selig's agenda aligns with broader efforts to provide regulatory clarity for crypto-adjacent markets without stifling technological progress.
