CFTC advisory sports prediction markets a 'pragmatic shift' - expert

"The advisory represents a pragmatic shift. By referring to Designated Contract Market (DCM) Core Principles, the CFTC is saying 'if this is allowed, it must be done like other products in our markets.' In practical terms, this signals that the Commission is open to these listings if the courts determine that they are legal and the CFTC has authority over them."

"Rather than rejecting the concept outright, regulators seem to be laying the groundwork for oversight if courts decide the products are legal. The advisory represents a pragmatic shift. By referring to Designated Contract Market (DCM) Core Principles, the CFTC is saying 'if this is allowed, it must be done like other products in our markets.'"

The CFTC has issued an advisory that could reshape the regulatory landscape for sports prediction markets. Rather than outright rejection, the agency is signaling willingness to oversee these platforms if courts determine they are legal. The advisory references Designated Contract Market Core Principles, indicating that if sports-related contracts are permitted, they must comply with the same standards as other regulated products. This represents a pragmatic shift from prohibition toward conditional oversight. Former CFTC Special Counsel Peter Sanchez Guarda characterizes the tone as preparatory rather than prohibitive, suggesting regulators are laying groundwork for potential legalization and supervision of prediction markets tied to real-world outcomes.

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