Head of the United States Commodity Futures Trading Commission (CFTC) Rostin Behnam announced that new rules are in the works for prediction markets. This action comes after a series of disputes between the CFTC and websites that provide betting on real-life events.
At a large meeting in Florida, Behnam discussed a draft to remove the fog for exchanges listing these bets and market users. The CFTC has criticized platforms like PredictIt, Polymarket, Zeitgeist, and Kalshi, claiming they engage in illegal gaming. However, the sector hopes that a judge will see things differently. The specifics of the CFTC's proposed approach remain unknown.
Behnam also discussed the difficulty of regulating cryptocurrency. He discussed how commission members are dealing with increased disintermediation in crypto transactions as a result of LedgerX. Behnam believed that justice and consistency should lead the commission's approach to such changes, with an emphasis on customer safety and market stability.
