Recently, U.S. Commodity Futures Trading Commission (CFTC) Chair Michael Selig announced that he has directed staff to begin drafting regulatory documents for prediction markets. Selig pointed out that the current CFTC framework has proven difficult to enforce and has failed to adequately protect market participants.
Clear Objectives for the New Rules
The core goal of this reform is to provide greater certainty and operational clarity by establishing well-defined contract standards. Selig emphasized that prediction markets, as important tools for price discovery, must ensure fairness, integrity, and transparency.
- Improve regulatory efficiency
- Strengthen participant trust
- Promote long-term sustainable growth of prediction markets
Industry observers believe the initiative could bring more institutional support to prediction markets and encourage broader compliance.