The U.S. Commodity Futures Trading Commission (CFTC) proposed a new rule to classify event contracts as swaps. These contracts are used in prediction markets. The move aims to solidify the agency's exclusive jurisdiction over these markets. Crypto platforms have shown growing interest in these markets. The reclassification would require platforms to adhere to stricter regulations. These include registration, recordkeeping, and reporting standards.
This regulatory push follows legal battles between the CFTC and various states. These battles concern authority over prediction markets. The rule change could provide legal clarity for companies like Coinbase. Coinbase has advocated for uniform federal oversight. The company also offers prediction market products. However, the rule change could also introduce significant compliance burdens. The proposal is open for a 30-day public comment period. This period began after its publication in the Federal Register.