The Commodity Futures Trading Commission (CFTC) had a busy summer. Within the space of a month in July and August, it issued five letters or emergency orders that were all specifically focused on prediction markets — a big change from an agency that was once almost silent about the rising products.
The agency told prediction markets to stop using American-style odds, to ensure that their incentive programs were not misleading and were available to all who qualified, and to make their self-certifications of new markets less broad.
It went a step further with two emergency orders, telling Kalshi to defy a court order that was granted in Michigan and another that was under consideration in New York.
