The Commodity Futures Trading Commission (CFTC) released its rules proposal for governing prediction markets Wednesday morning after the White House approved the document.
This Notice of Proposed Rulemaking (NPRM) is the penultimate step before the suggested rule is enacted. It defines key terms the CFTC uses to classify bets—such as whether an event constitutes “gaming”—and clarifies some of the potential boundaries the agency will set for prediction markets. As the CFTC argues in court that prediction markets should remain under its watch amid pushback from state gaming officials and tribal groups, it can lean on the final rule as a comprehensive public framework for its policies.
