U.S. Commodity Futures Trading Commission Seeks Public Comment on Prediction Market Regulation

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Investing.com – The U.S. Commodity Futures Trading Commission (CFTC) released a notice of proposed rulemaking on Thursday, seeking public feedback on potential revisions or new regulations for event contracts used in prediction markets.

Chairman Michael S. Selig stated that this move represents a step forward in promoting responsible innovation in the derivatives market. He added that the process aims to establish new rules based on a reasonable interpretation of the Commodity Exchange Act, while reaffirming the CFTC’s exclusive jurisdiction over prediction markets.

The notice solicits comments on multiple areas, including the application of statutory core principles and commission regulations in prediction markets. It also asks which types of event contracts might be prohibited due to public interest concerns, as well as cost-benefit considerations related to prediction markets.

The commission plans to use the feedback received to guide future agency actions regarding prediction markets, which may include rulemaking.

Written comments must be submitted within 45 days of the notice’s publication in the Federal Register. The public can submit comments through the CFTC’s public comment portal.

This article was translated with the assistance of artificial intelligence. For more information, see our Terms of Use.

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