"It is time for clear rules and a clear understanding that the CFTC supports lawful innovation in these markets."
"Consistent with my commitment to fostering responsible innovation in crypto asset markets, I will continue to support the responsible development of event contract markets."
"For too long, the CFTC's existing framework has proven difficult to apply and has failed our market participants. That is something I intend to fix by establishing clear standards for event contracts that provide certainty to market participants."
The CFTC withdrew its 2024 rule proposal that would have prohibited political and sports event contracts and signaled support for lawful prediction-market innovation. The agency indicated willingness to defend platforms in state legal cases to uphold exclusive federal jurisdiction. The CFTC cautioned operators about potential state action and noted concerns that some prediction markets may be avoiding state gambling laws by structuring offerings as contracts. The agency directed staff to develop a clear framework and standards for event contracts to provide certainty to market participants and to foster responsible innovation in related crypto asset markets.
Read at ReadWrite
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