CFTC Withdraws Proposed Ban on Sports and Political Prediction Markets
The post CFTC Withdraws Proposed Ban on Sports and Political Prediction Markets appeared on BitcoinEthereumNews.com.
The CFTC withdrew its 2024 proposal banning sports and political prediction markets. The decision followed internal review and public feedback, according to press releases and reporting. Chair Michael S. Selig said the agency will pursue new rulemaking aligned with the Commodity Exchange Act. The CFTC has pulled its 2024 proposal that aimed to ban sports and political prediction markets, saying it will not proceed with final rules on the issue. CFTC Chairman Michael S. Selig said the agency will instead initiate new rulemaking based on a sound interpretation of the Commodity Exchange Act. Proposal Withdrawal and Advisory Repeal The proposed rule, initially proposed in June 2024, aimed to ban a wide array of event contracts, including those related to wars, terrorism, and other outcomes deemed not in the public interest. The CFTC also withdrew a 2025 staff advisory regarding sports-related event contracts, which it believed had confused in the market. As Chairman Selig stated, markets were left confused by the advisory, and he hopes the new rulemaking process will provide clearer guidance. The CFTC aims to set standards that will enable innovation and provide clarity for entities subject to CFTC regulation. The Biden era prediction markets rulemaking was a frolic into merit regulation with an outright ban on political contracts ahead of the 2024 presidential election. The @CFTC is withdrawing that endeavor and will advance a new rule grounded in a rational interpretation of the law. https://t.co/sVrVQJVe8y — Mike Selig (@ChairmanSelig) February 4, 2026 In this regard, “event contracts” is a term that defines financial contracts that allow traders to place bets on the outcome of future events, such as election results or sports, as governed by the federal government. The nature of platforms that offer event contracts includes those that offer futures or swap markets for real-world events. Some…
Filed under: News - @ February 5, 2026 10:28 am