On September 30, 2026, the Commodity Futures Trading Commission (CFTC) submitted two new rules regarding event contracts to the White House Office of Management and Budget for review. These measures aim to solidify federal oversight of prediction markets amid ongoing legal disputes with several U.S. states.
The first proposal seeks to amend the definition of a swap to explicitly include event contracts, bringing them under the Commodity Exchange Act. The second measure is an interim final rule designed to exclude casino-style gambling products from this classification, a move intended to clarify the scope of federal jurisdiction.
The CFTC is currently facing litigation from states including Ohio and Tennessee, which argue that sports-linked contracts conflict with local gambling laws. Additionally, New Jersey has petitioned the Supreme Court to address the jurisdictional conflict between federal and state authorities.
The regulatory shift follows earlier commission actions, including a June notice on assessing gaming-related contracts and a September 22 advisory regarding manipulation risks in mention markets. Currently, platforms such as Kalshi, Polymarket, Crypto.com, and Robinhood offer event-based trading products.
