CFTC Targets Prediction Platforms for Regulatory Clarity
CFTC seeks to include prediction platforms in swaps to resolve legal conflicts with state gambling laws.
In brief
CFTC seeks to include prediction platforms in swaps to resolve legal conflicts with state gambling laws. CFTC aims to define prediction markets as commodity derivatives to avoid state gambling regulations while NFL pushes for local oversight. Originally reported by Pymnts.
CFTC Proposes Swap Definition
The Commodity Futures Trading Commission wants to include event contracts based on sports, political, cultural and weather events in financial swaps.
“Americans use event contracts to hedge risks, speculate, and provide the public with information about the outcome of future events”
CFTC Claims Exclusive Authority
Chairman Michael S. Selig states prediction markets are commodity derivatives within the CFTC’s regulatory remit under the Commodity Exchange Act.
“These products are commodity derivatives squarely within the CFTC’s regulatory remit under the Commodity Exchange Act and are within the agency’s exclusive jurisdiction”
NFL Pushes for State Oversight
The National Football League submitted an amicus brief to the Supreme Court arguing prediction markets threaten game integrity and consumer protection.
“the league wants local gambling regulators to govern prediction markets”
In short
CFTC aims to define prediction markets as commodity derivatives to avoid state gambling regulations while NFL pushes for local oversight.
