The Commodity Futures Trading Commission (CFTC) has introduced new regulatory measures to clarify the status of prediction markets. On October 9, 2026, the agency issued an Interim Final Rule and a Notice of Proposed Rulemaking to establish a clear distinction between event contracts and traditional gambling.
The proposed rule aims to classify event contracts tied to sports, politics, culture, and weather as swaps under the Commodity Exchange Act. This classification specifically targets contracts traded on CFTC-registered designated contract markets (DCMs), placing them under federal oversight.
Simultaneously, the interim rule explicitly excludes casino-style gambling products, such as sports wagers and casino games, from the legal definition of swaps. This move seeks to resolve ongoing jurisdictional disputes between federal authorities and individual states regarding platforms like Kalshi and Polymarket.
The CFTC submitted these rules to the White House on September 28, 2026. The agency is now accepting public comments on both the interim rule and the proposal for a period of 30 days following their publication.
