CFTC Drops Ban on Event Contracts in Regulatory Shift That May Benefit Coinbase
The U.S. Commodity Futures Trading Commission (CFTC) under Chairman Michael Selig is abandoning restrictive proposals for event-based contracts, signaling a coordinated approach with the SEC that analysts say could create tailwinds for crypto markets.
Clear Street analysts highlight Coinbase (COIN) as a potential beneficiary of the policy reversal, which removes barriers to prediction markets for political and sports events. The CFTC will now draft new rules for these derivatives, marking a departure from its previous adversarial stance.
Chairman Selig emphasized regulatory harmonization during a joint SEC-CFTC event, stating: 'The objective is clear rules of the road for crypto.' The MOVE comes as the CFTC launches Project Crypto to provide interim clarity ahead of pending legislation.
