CFTC Withdraws Proposal to Ban Sports and Political Prediction Markets

[AIcash]

The US Commodity Futures Trading Commission has withdrawn a Biden-era proposal that would have banned prediction markets tied to sports, politics, and other real-world events. Newly confirmed CFTC Chair Mike Selig announced that the agency will not move forward with a 2024 rulemaking that classified such contracts as “contrary to the public interest.”

Selig criticized the proposal as an example of merit-based regulation, noting it was introduced ahead of the 2024 presidential election. He said the CFTC will instead pursue a new rulemaking aligned with the Commodity Exchange Act and congressional intent, aiming to support responsible innovation in derivatives markets.

The move benefits prediction platforms such as Polymarket and Kalshi, which have seen rapid growth in recent years.

[nihalsari]

merit-based regulation ahead of the 2024 election… sounds like someone got political