The US Commodity Futures Trading Commission is preparing to introduce a clearer regulatory framework for prediction markets, according to newly appointed Chair Michael Selig.
The CFTC has withdrawn earlier proposals that aimed to ban political and sports-related prediction markets. It has also cancelled a staff advisory that warned platforms against offering sports-linked contracts, saying the guidance created more confusion than clarity.
Speaking alongside SEC Chair Paul Atkins, Selig said uncertainty around prediction markets has not served the public interest. He noted that while these markets are often seen as novel, they need consistent rules rather than piecemeal enforcement.
The move comes as prediction markets gain popularity in crypto. Platforms like Coinbase, Gemini, Kalshi, and Polymarket now allow users to trade on outcomes tied to politics, sports, and cultural events.
However, legal challenges are growing, with several US states arguing they have authority over sports betting-related contracts. Coinbase has already sued multiple states over the issue.
Selig said the CFTC will defend its jurisdiction where commodity derivatives are involved, while working with the SEC to ensure investor protection and market integrity.
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