The U.S. White House Office of Information and Regulatory Affairs (OIRA) has commenced its review of a draft rule from the Commodity Futures Trading Commission (CFTC) concerning the regulation of prediction markets. Submitted on May 26, the proposal could significantly influence the operations of platforms like Kalshi and Polymarket in the U.S. by potentially establishing a federal regulatory framework for event contracts.
This move follows debates over whether sports event contracts constitute online gambling, with states like Illinois and New Jersey opposing the CFTC's stance. The CFTC, supported by President Trump, argues for exclusive regulatory authority over these markets. The proposal also builds on a public comment initiative from March, which examined the prohibition of certain prediction market contracts deemed contrary to public interest, including those related to elections and gambling.
White House Reviews CFTC's Proposal on Prediction Market Regulation
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