The new chairman of the Commodity Futures Trading Commission said Thursday the agency will craft new, clear rules to govern prediction markets.
“Despite their history, many view them [prediction markets], as novel or unsettled, and that uncertainty has not served our markets, nor has it served the public interest,” said CFTC head Michael Selig during an event held jointly with Securities and Exchange Commission Chairman Paul Atkins.
Selig said he ordered agency staff to withdraw a proposed rule from 2024 that would have prohibited trades on sports and politics. He also directed them to rescind a 2025 advisory that urged prediction markets to exercise caution over offering sports contracts.
“While the advisory was issued at the staff level with the intent of bringing awareness to the litigation,” Selig said, “it has instead contributed to uncertainty in our markets.”
Kalshi, Polymarket and others are embroiled in court cases in multiple states over event contracts on sports. The prediction platforms have boomed in popularity, offering users a forum to wager on the outcomes of events in politics, markets, culture and more.
