CFTC submits rules to define event contracts as swaps to White House budget office
CIE News ·
The CFTC sent two rules to the White House's OMB aimed at classifying event contracts as swaps and excluding them from gambling, according to CoinDesk.
The U.S. Commodity Futures Trading Commission submitted two rules to the White House's Office of Management and Budget to classify event contracts as swaps and specify that they are not gambling products, according to CoinDesk. The proposed changes would cover contracts offered on platforms such as Polymarket, Kalshi, Robinhood, and Crypto.com. The submissions, dated September 28, were designated by the agency as not economically significant.
According to CoinDesk, the regulatory maneuver comes as the CFTC disputes state-level claims that prediction markets operate illegal gambling services. While the Third Circuit federal appellate court supported federal jurisdiction over prediction markets, the Sixth and Eighth Circuits recently determined that certain sports-related contracts do not qualify as swaps.
CoinDesk reported that the agency is currently led by lone acting member Chairman Mike Selig, operating without other commissioners nominated by President Donald Trump. One of the measures is designed as an interim final rule that would take effect immediately upon issuance while remaining subject to public review.