CFTC talks sports leagues, SEC coordination as prediction market rulemaking drags on
The CFTC is actively engaging with major U.S. sports leagues to regulate prediction markets, the agency's chairman said, as federally regulated platforms including Kalshi and Polymarket expand deeper into sports contracts. The outreach comes amid ongoing CFTC rulemaking that the industry has been awaiting for clarity on event-contract oversight. Separately, the SEC and CFTC are stepping up coordination on prediction market enforcement, signaling tighter scrutiny for crypto-linked event contracts. Ethereum infrastructure firm Consensys joined the public engagement process with a statement that the CFTC's choices in building this regulatory framework will matter for the sector. The developments unfold against a backdrop of regulatory gray area between the two agencies that market participants say has been stymying growth.
Kalshi and Polymarket face a window where expanded sports contracts could be reclassified or restricted once the CFTC completes its framework, making their current push into league-linked markets a high-stakes bet on timing.