The regulatory framework for prediction markets built under the previous Biden administration is about to undergo significant change under the new commission leadership. The U.S. Commodity Futures Trading Commission (CFTC) is reviewing its previous regulatory approach and hinting at a shift toward different policy directions.

## Shift from Biden-era Regulatory Policies

During the Biden administration, a strict regulatory stance toward prediction markets was adopted. However, the recent decision by the CFTC signifies a fundamental change in that policy. The new leadership of the commission is adopting a new strategic direction by flexibly modifying the previous regulatory stance.

## Resolution of Regulatory Disputes Over Event-Based Contracts

The ongoing regulatory conflict between prediction market companies and the CFTC over the provision of event-based contracts has been resolved. This resolution reflects a regulatory posture that is markedly different from the Biden era. The policy shift by the commission is expected to create a new environment for market participants.

## Implications of the New Regulatory Strategy

The strategic shift by the CFTC leadership represents more than just policy adjustments; it indicates a major change in how the entire prediction market industry is viewed. Moving away from the strict regulatory approach of the Biden administration toward a more flexible market response is expected to have a significant impact on future industry trends.