CFTC Withdraws Prior Guidance Prohibiting Certain Event Contracts Including Prediction Markets

The U.S. Commodity Futures Trading Commission (CFTC) announced the withdrawal of its prior guidance that had prohibited certain event contracts, specifically including sports- and politically-related prediction markets. This action removes previous restrictions on these instruments, signaling a potential shift in regulatory approach toward such markets.

Event contracts, such as those based on sports outcomes or political events, were previously barred under the withdrawn guidance issued by the CFTC. The agency, responsible for regulating derivatives and futures markets, made this announcement as part of ongoing efforts to address innovation in the cryptocurrency and derivatives space.

CFTC Chairman Michael Selig commented on the decision, noting the agency's commitment to lawful innovation. The involved parties include the CFTC as the primary regulatory body overseeing these federally regulated derivative instruments.

No specific dates or deadlines for further actions were mentioned in the announcement. This development occurs within a broader context of cryptocurrency regulatory updates, as referenced in related discussions involving the White House, Treasury Secretary, SDNY, and CME, though details on those were not provided in the article content.

The withdrawal emphasizes prediction markets' status as derivative instruments under federal jurisdiction, potentially paving the way for clearer rules.