U.S. CFTC withdraws draft ban on political event contracts, indicating a shift in market regulation stance

ZkProver · 2026-02-10T01:09:41+00:00

The Chairman of the U.S. Commodity Futures Trading Commission, Mike Selig, announced the withdrawal of the 2024 "Event Contract" regulatory proposal and the abolition of the Biden administration's related guidance. The move aims to advance new regulations based on the Commodity Exchange Act and provide clearer regulatory signals for prediction markets. This is seen as a significant shift in regulatory direction.

ZkProver

2026-02-10 01:09:41

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ChainCatcher News, the Chair of the U.S. Commodity Futures Trading Commission (CFTC), Mike Selig, announced on Wednesday that the agency is officially withdrawing the proposed “Event Contract” regulation draft for 2024 and revoking a related guidance issued during the Biden administration.

The draft originally aimed to prohibit prediction contracts based on political event outcomes, treating them the same as contracts related to war, terrorism, and other “public interest” violations. Selig stated that the 2024 proposal reflects the previous administration’s “overreach in value judgment-based regulation,” and that the CFTC will reintroduce a new set of rules based on the Commodity Exchange Act (CEA), which are more consistent and rational, to support responsible innovation in the derivatives market and align with Congress’s legislative intent. This policy adjustment provides a clearer regulatory signal for prediction markets.

Previously, the CFTC lost a lawsuit against Kalshi, which forced the agency to allow the launch of political prediction contracts. With the new administration in office, institutions including Coinbase and Cboe have begun actively developing prediction market-related businesses. The withdrawal of the old regulation is seen as a significant turning point in the regulation of prediction markets in the United States.

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