The White House is considering a plan from the Commodity Futures Trading Commission (CFTC) to create rules for bets made on future events, like those in prediction markets. This would be a major move towards official government regulation of this growing area.
A proposal is currently being reviewed by the Office of Management and Budget, as noted on a U.S. government website. While the details haven’t been made public yet, the government plans to ask for public feedback once the review is complete.
This change happens as platforms where people bet on future events – like elections, sports, and world affairs – are getting more attention from state officials and legislators.
CFTC moves toward formal event contract framework
This plan is based on feedback gathered earlier this year from over 3,000 people, including industry professionals, legal specialists, and market analysts. The feedback came from a review of issues like the risks of illegal trading, restricted agreements, consumer safety, and the rules governing prediction markets.
If approved, this new set of rules would be the first time the federal government has comprehensively regulated event contracts in the U.S. Companies like Kalshi and Polymarket would likely be impacted by these regulations.
States continue challenging prediction platforms
A number of U.S. states believe that some prediction markets function more like gambling than legitimate financial investments. States like Nevada, New Jersey, Maryland, Ohio, Montana, and Illinois have taken legal steps – including lawsuits and enforcement actions – against companies running these prediction markets.
The disputes center on whether federal oversight by the CFTC preempts state gambling laws.
Kalshi and companies like it argue their contracts are similar to commodities and should be regulated by federal authorities like other derivatives.
State regulators believe that companies offering bets on things like sports, elections, and public events should follow the same gaming and consumer protection laws as other gambling businesses.
Trump backs federal oversight approach
President Trump recently stated he believes prediction markets should continue to be regulated solely by the Commodity Futures Trading Commission (CFTC).
On his social media platform, Truth Social, Donald Trump stated that the United States needs to remain a leader in both cryptocurrency and the market for predicting future events. He also mentioned the government is working on regulations for the crypto industry. This comes as discussions heat up about whether these markets should be overseen by federal or state authorities.
Industry faces questions over oversight and compliance
Prediction markets have become increasingly popular recently, especially for bets on things like politics, the economy, and sports. However, this growth has also caught the attention of regulators who are worried about issues like illegal insider trading, unfair market practices, and the use of confidential information.
The CFTC’s new plan could be a crucial indicator of how the federal government plans to oversee the growing market for digital assets, ensuring financial protection while also respecting existing state gambling regulations.
Read More
- WLD PREDICTION. WLD cryptocurrency
- BTC PREDICTION. BTC cryptocurrency
- ZEC PREDICTION. ZEC cryptocurrency
- Gold Rate Forecast
- Brent Oil Forecast
- NEAR PREDICTION. NEAR cryptocurrency
- SOL PREDICTION. SOL cryptocurrency
- EUR CNY PREDICTION
- TON PREDICTION. TON cryptocurrency
- USD CNY PREDICTION
2026-05-27 22:30