The 267-page document outlines how the federal regulator intends to approach event contract trading across the U.S. and reiterates the agency’s stance that prediction markets broadly fall under its purview as ‘swaps’ under the Commodity Exchange Act (CEA).
“The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation,” said Selig in a CFTC press release. “This proposal gives the Commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward.”
The proposed rules, which are subject to a final period of review before they could be formally implemented, cover a lot of ground.
Unsurprisingly, sports are a major focus of the public interest determinations. Sports..