The U.S. Commodity Futures Trading Commission has eased its regulatory stance on prediction markets tied to political and sports outcomes. Chair Michael Selik said the agency will withdraw a Biden-era ban on political and sports contracts and revoke a related regulatory alert issued in 2025.
Selik said, "We will pursue responsible innovation and clear regulation at the same time." He said the CFTC will set guidelines for operating prediction markets based on the Commodity Exchange Act. The move is seen as providing some room for the legal status of prediction platforms used in crypto and decentralised finance (DeFi).
But while the federal stance is easing, state-level regulation is tightening further. New York Attorney General Letitia James called prediction markets "illegal gambling disguised as a financial product" and issued a consumer alert. A Nevada court issued an injunction against Polymarket, which operated prediction contracts tied to the Super Bowl, and Connecticut also ordered it to halt operations.
Chi-gyu Hwang
delight@d-today.co.kr