- The CFTC is sending two proposed event contract rules to the White House for review. These rules could classify some prediction market contracts as swaps.
- The CFTC is also suggesting that casino-style gambling products should not be considered swaps. This comes as conflicting court decisions have created uncertainty for sports prediction markets.
- The Office of Management and Budget will review the rules before the CFTC releases the rule text.
The United States Commodity Futures Trading Commission has sent two event-contract rules to the White House for review. This is part of their effort to make clear how prediction-market contracts work within the federal derivatives system. The Office of Management and Budget’s Office of Information and Regulatory Affairs got both measures on September 28.
One would define certain event contracts as swaps, while the other would exclude casino-style gambling products from the swap definition. OIRA lists both measures as pending review and not economically significant.
LATEST: 🇺🇸 The CFTC sent the White House two draft rules, one to count event contracts as swaps and another to exclude casino-style gambling products from swaps. pic.twitter.com/5szRnqZ74o
— CoinMarketCap (@CoinMarketCap) September 30, 2026
CFTC Moves To Define Event Contracts As Swaps
The first measure, RIN 3038-AF82, is titled “Further Definition of ‘Swap’ to Include Event Contracts” and is listed as a proposed rule.
The second, RIN 3038-AF81, is an interim final rule titled “Further Definition of ‘Swap’ to Exclude Casino-Style Gambling Products.”
The OIRA filings do not include the full regulatory text, meaning it remains unclear how the CFTC would apply the proposed definitions to individual contracts or prediction-market platforms.
Prediction Markets Face Conflicting Court Decisions
The regulatory move comes as U.S. courts continue to examine whether sports-related event contracts fall under federal derivatives law or state gambling regulations.
On September 25, the Sixth Circuit ruled that Kalshi’s sports-event contracts did not qualify as swaps under the Commodity Exchange Act. The court also concluded that the CEA did not preempt Ohio and Tennessee gambling laws, even if the contracts were treated as swaps.
The decision adds to conflicting rulings from federal appellate courts, leaving the regulatory treatment of sports-event contracts unsettled.
The proposed framework could provide a clearer federal definition of which event contracts qualify as swaps while establishing a separate boundary for casino-style gambling products.
However, the eventual impact will depend on the final rule language, the applicable rulemaking process and how courts interpret the Commodity Exchange Act.
Stay informed with the latest trends in Web3, blockchain innovation, and cybersecurity updates at 3verseTV
You need to login in order to Like
Leave a comment