SEC publishes notice of proposed rulemaking on event contracts
The U.S. Securities and Exchange Commission (SEC) published a notice of proposed rulemaking on event contracts on August 21. The notice appeared in Troutman Pepper Locke's weekly consumer financial services newsletter. Better Markets separately flagged a joint request for comment by the SEC and the Commodity Futures Commission (CFTC) on event contract regulation. Neither source provided details on the scope, substance, or comment deadline.
The SEC notice lands just as Kalshi is asking the same regulator to block Cboe's competing earnings contracts. That timing forces the SEC to wear two hats: it must field an emergency stay request while drafting rules that could make that request moot. For Cboe, a swift rulemaking could validate its exchange infrastructure and erase Kalshi's delay tactic.
For Kalshi, any lag between the notice and final rules preserves a window to deepen liquidity. Traders should expect the SEC to treat traditional exchange entrants more favorably than specialist platforms if the proposal embeds existing securities compliance into the event contract standard. The comment period, once detailed, will become the battleground where each operator tries to lock in structural advantages.