coindesk.com
The U.S. Commodity Futures Trading Commission proposed its first prediction markets regulation on Wednesday, pitching an approach to how it can make widespread evaluations of whether contracts trip the federal standard for what's off-limits.
The agency that regulates U.S. derivatives has been a defender of prediction markets such as those run by Kalshi, Polymarket and Crypto.com, with Chairman Mike Selig making them a top legal and regulatory priority for the CFTC. He's been promising a new, tailored regulatory regime for the industry, and the new proposal addresses part of what may be multiple rules pursued by the regulator.
“The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation,” Selig said in a statement. “This proposal gives the commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward.”
Federal law holds that contracts involving war, terrorism, assassination, illegal activity and gaming can be deemed outside of the public interest and not allowed. In practice and in its recent embrace of>recently expressed support for the track Selig has been on, saying in a social-media post that "Other Countries are after this new form of Financial Market, and we want to remain at the top."