CFTC moves to classify prediction market event contracts as swaps
CIE News ·
The CFTC issued an interim final rule and a separate proposal to place event contracts under federal swaps rules, seeking exclusive oversight over prediction platforms while excluding casino gambling.
The U.S. Commodity Futures Trading Commission has taken formal action to classify event contracts as swaps, aiming to bring prediction platforms under its exclusive federal regulatory authority, CoinDesk reported. On October 9, 2026, the agency put an interim final rule into effect while opening it to public feedback, and also issued a separate regulatory proposal covering contracts based on sports, politics, culture, and weather.
The regulatory initiative seeks to establish that contracts traded on platforms such as Kalshi and Polymarket fall under CFTC oversight rather than state gambling rules, while explicitly excluding casino-style gambling from the definition of a swap. The separate proposed rule includes a 30-day public comment period. Chairman Mike Selig currently operates as the sole commissioner on the agency after President Donald Trump declined to nominate additional commissioners.
The move comes amid legal disputes with multiple states that claim regulatory authority over sports wagering on these platforms and accuse them of operating illegal gambling services, according to CoinDesk. A petition asking the U.S. Supreme Court to resolve the jurisdictional conflict has already received submissions from several states and former federal officials.