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CFTC · Prediction Markets · Regulation · Sports Betting
The Commodity Futures Trading Commission (CFTC) published new proposed rules on Wednesday, aiming to regulate prediction markets like Kalshi and Polymarket by allowing most sports betting while explicitly banning wagers on war, terrorism, assassinations, and specific sports-related events, following recent insider-trading scandals.
The new guidelines, first reported by the Wall Street Journal, empower regulators to reject bets deemed against public interest or susceptible to manipulation. Specifically, wagers on armed conflict, terrorism, and assassinations are prohibited due to their reliance on sensitive or classified information.
The CFTC also plans to review certain contract types individually and is considering measures to safeguard retail traders. Prediction market platforms express support for the CFTC's initiative to establish a clear federal framework.
Polymarket's spokesperson confirmed their commitment to working towards a framework that protects the public and fosters innovation. Kalshi, through spokeswoman Dani Lever, stated that violent markets, including war, are already banned on its platform.
Kalshi, led by CEO Tarek Mansour, recently implemented a policy requiring users to disclose employers for certain bets with potential for foul play, effective in the coming weeks, in response to a series of insider-trading incidents.
