The US Commodity Futures Trading Commission has submitted a proposal to expand the legal definition of a swap. The agency aims to include event contracts within this classification, while simultaneously introducing an interim final rule that would exclude products resembling casino-style gambling.
This regulatory move follows ongoing jurisdictional disputes between the CFTC and state gambling authorities. The commission asserts that federal law grants it exclusive oversight of swaps traded on regulated exchanges, including platforms like Polymarket and Kalshi.
State regulators currently challenge this authority, particularly regarding contracts tied to sports events. They argue that such products should fall under the jurisdiction of state-level gambling laws rather than federal commodity regulations.
