The U.S. Commodity Futures Trading Commission will hold a public roundtable in the coming weeks to review its regulatory approach to prediction markets, a move that could affect platforms such as Kalshi and Polymarket.
The roundtable will follow the agency’s request for information on sports-related event contracts and is intended to gather input from market participants, legal experts, and industry stakeholders.
Discussions will examine the legality of event contracts under the Commodity Exchange Act, consumer protection concerns, and potential regulatory changes, according to a statement on Wednesday.
Acting Chairman Caroline D. Pham criticized the commission’s previous stance, calling it a “sinkhole of legal uncertainty” that has hindered innovation, per the statement.
Kalshi, a CFTC-regulated designated contract market, has faced regulatory obstacles, including the agency’s decision to block its proposal for election-related contracts in 2023. Polymarket, which operates on Ethereum, was fined $1.4 million in 2022 for offering unregistered swaps.
Common-sense approach
Under Biden, the CFTC cracked down on event contracts and unregistered platforms, Pham said, with former Chair Rostin Behnam expanding oversight of crypto derivatives and DeFi.
In response, Pham said the CFTC must take…
