CFTC to assess prediction markets in the public round table

The American Commodity Futures Trading Commission will hold a public round table in the coming weeks to revise its regulatory approach to prediction markets, a movement that can influence platforms such as Kalshi and Polymarket.

The round table follows the agency’s request for information about sports -related event contracts and is intended to collect input from market participants, legal experts and stakeholders in the industry.

Discussions will investigate the legality of event contracts under the Exchange Act Commodity, the concerns of consumer protection and potential legal changes, according to a rack On Wednesday.

Acting chairman Caroline D. Pham criticized the previous position of the committee and called it a “zinc hole of legal uncertainty” that hindered innovation according to the statement.

Kalshi, a CFTC regulated contracting market, has had to deal with legal obstacles, including the decision of the agency to block his proposal for election-related contracts in 2023. Polymarket, which is active on Ethereum, was fined $ 1.4 million in 2022 in 2022 to offer non-registered Swaps.

Common sense

Under Biden, the CFTC has lifted event contracts and non -registered platforms, said Pham, in which former chairman Rostin Behram supervised crypto derivatives and Defi.

In response, Pham said that the CFTC should follow a future -oriented approach while maintaining supervision to protect consumers against fraud and abuse practices.

“Unfortunately, the unnecessary delay and anti-innovation policy of recent years has seriously limited the assets of the CFTC to a common sense of prediction markets,” she said.

Crystalball

During the US presidential elections of the US presidential election, Polymarket saw a significant trade volume, in which traders used it to follow the probability that Donald Trump secured republican nomination and the subsequent presidential victory on 5 November.

Polymarket became a key barometer Van Sentiment during the Trump campaign, where traders respond quickly to shifts in voice data, legal proceedings and important notes.

The CEO of the company, Shayne Coplan, was later focused in a law enforcement attack on November 14, with authorities that took his phone and electronics.

At the time, a spokesperson characterized the move to Decrypt As a ‘political retribution’, claiming that Coplan was selected after Polymarket users had correctly predicted Trump’s victory.

With Trump now in the office, Pham sees prediction markets as a “new boundary” for the use of market sentiment to gauge the opportunities and to improve the accuracy of information in the digital age.

The round table will take place at the CFTC headquarters in Washington, DC, with further details that must be announced. Public comments and participation requests are due before 21 February, the regulator said.