U.S. CFTC moves to fold event contracts into swaps regulations as legal fight rages
The derivatives regulator is proposing a formal rule to include certain contracts traded on platforms like Kalshi’s as swaps that require the agency’s oversight.
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Summary
- The U.S. Commodity Futures Trading Commission has issued one rule and proposed another in an effort to solidify Chairman Mike Selig’s view that prediction markets transactions are properly regulated by his agency alone.
- This latest policy move to more explicitly define event contracts as “swaps” may bolster the agency’s legal position in a dispute with several states that has already seen a couple of federal rulings go against the CFTC.
