CFTC prediction market data plan draws tribal sovereignty concerns
The CFTC circulated a proposal in mid-June that would change how the agency evaluates event contracts and public-interest determinations for prediction markets. Tribal leaders have raised sovereignty concerns, with the Karuk Tribe securing involvement in the dispute, though sources do not detail the specific objections. The proposal comes as the commission also advances broader formal rules for prediction markets, including permitted and prohibited contract categories, amid overlapping state and tribal opposition across multiple jurisdictions including New Mexico and Minnesota. The agency did not immediately respond to questions about the proposal's full content, and available reports do not specify which contract types would be affected or the timing of final action.
Kalshi and Polymarket must navigate yet another overlapping federal rulemaking while already fighting state preemption suits and reclassifying contracts under a separate CFTC proposal. Tribal opposition adds a sovereign-immunity dimension that could delay or complicate any public-interest determination the commission tries to enforce against tribal gaming interests.