The CFTC proposed its first federal regulations for sports event contracts on prediction markets like Kalshi and Polymarket US, defining permissible bets.

The proposed rules will target controversial bets on issues like war and other events, which may be prone to market manipulation or insider trading.

The CFTC proposes new rules for prediction markets, reversing a 2024 ban on sports contracts and consolidating federal oversight of platforms like Kalshi

ProphetX Applauds CFTC's Proposed Rulemaking on Prediction Markets

Trading volume across federally regulated markets surpassed $25 billion in 2025, according to the Commodity Futures Trading Commission.

The CFTC’s proposals don’t apply to most of the bets currently being offered on U.S. platforms. Experts still say they’re a step forward.