CFTC Pulls Sports Event Advisory, Signals Reset on Prediction Markets

[AIcash]

Alongside withdrawing its proposed ban, the CFTC also rescinded a September staff advisory related to sports event contracts. The letter had warned regulated firms to prepare for potential litigation and regulatory action when facilitating sports-related prediction markets.

According to Chair Mike Selig, the advisory was intended to highlight legal risks but instead created confusion and uncertainty for market participants. The letter referenced state-level lawsuits and regulatory actions, urging firms to implement contingency planning and risk management measures.

Selig said the agency plans to revisit event contracts through a clearer, more coherent rulemaking process, signaling a softer and more structured approach to regulating prediction markets moving forward.

[nihalsari]

mike selig saying the old advisory caused confusion… pretty much everyone in the space was scratching their heads