CFTC Chairman: Regulatory guidelines for prediction markets will be released to establish clear rules for new types of event contracts.

Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated, “Today, we are taking action to release clear guidance for prediction markets to help trading platforms understand the CFTC’s expectations for the listing of new contracts. We take responsibility for ensuring that this asset class has transparent rules.” In an interview with CNBC, Selig said, “Prediction markets are a rapidly evolving field, which is why we are taking action today to release some clear guidance to help our trading platforms. Our trading platforms self-certify contracts and have their own rulebooks, and they need to clearly understand the CFTC’s expectations. Therefore, we will release these guidelines in clear written form for trading platforms to follow. We will also release a pre-notification of the proposed rulemaking later today. We intend to establish clear rules of conduct for this new asset class and new market. It is crucial to ensure that there is no manipulation, insider trading, or abuse in the derivatives markets. Therefore, we will take responsibility for ensuring that these new asset classes have clear rules of conduct.”