US CFTC Proposes Classifying Event Contracts as Swaps for Oversight

Key Facts

1The U.S. CFTC proposed a formal rule to include certain event contracts as swaps requiring agency oversight.

The U.S. Commodity Futures Trading Commission (CFTC) proposed a formal rule to include certain event contracts within the category of swaps under its oversight. CoinDesk reported that the proposal aims to secure the agency's legal footing in regulating prediction markets and event-based platforms such as Kalshi.

The regulator intends to establish formal oversight over event-based derivatives amid ongoing legal challenges regarding their classification. This regulatory move comes at a time of market anticipation.