CFTC proposes sweeping prediction market rules after White House clears framework
The Commodity Futures Trading Commission proposed sweeping new rules for prediction markets on Tuesday, June 10, publishing a 267-page framework under Michael Selig that defines which event contracts may be offered legally. The proposal marks the agency's first formal definition of 'gaming' and would allow many sports contracts while restricting micro-bets, injury markets, and officiating outcomes. The release follows White House completion of its regulatory review and thousands of public comments gathered amid weekly sector trading volume growth from $300 million to $3 billion. The agency reiterated its stance that prediction markets broadly fall under CFTC purview, with the rules now open to further public comment.
Platforms including Kalshi and Crypto.com must now navigate a formal comment period that will determine whether their sports event contracts survive as CFTC-regulated derivatives or face reclassification as unlawful gaming. Any final restriction on micro-bets or injury markets would force immediate delisting of their most liquid products.
The proposal comes weeks after the CFTC sued Minnesota to block the nation's first state prediction market ban, part of a parallel federal campaign to assert supremacy over state lawmakers and tribal opponents.