The U.S. Commodity Futures Trading Commission (CFTC) is set to propose new regulations for prediction markets, aiming to enhance oversight and reduce manipulation risks. The proposed rules, expected to be announced on Wednesday, will allow regulators to block prediction contracts deemed not in the public interest or susceptible to manipulation, particularly those where outcomes could be swayed by a single individual. These regulations will offer a clearer compliance framework for platforms like Kalshi, while still permitting most sports betting contracts.