The U.S. Commodity Futures Trading Commission (CFTC) has issued an interim final rule immediately implementing Chairman Mike Selig's regulatory framework for prediction markets while opening a separate 30-day comment period on a proposal to classify event contracts as swaps. The proposed regulation would bring sports, political, cultural, and weather-based contracts traded on platforms like Kalshi and Polymarket under existing federal swaps regulations. Multiple states and former federal officials have challenged the CFTC's authority, submitting arguments to the U.S. Supreme Court seeking resolution of the jurisdictional dispute. States contend these platforms operate illegal gambling services under state law, resulting in conflicting federal appellate rulings that have both supported and opposed state regulatory claims. The interim rule allows the CFTC to demonstrate active implementation of its regulatory stance should the Supreme Court take up the case.