U.S. regulator warns prediction markets against cutting corners in event contracts
That said, the agency explained that “closely related event contracts may be certified as a class,” citing legitimate ways to make consolidated filings with shared exhibits. The explosive growth of the event-contracts market — especially in the areas of sports bets and predicting political outcomes — is to some degree a figure-it-out-as-we-go situation, considering the relative inexperience of much of the industry and the uncertain legal footing of the CFTC. The CFTCs status as the primary regulator of prediction markets is itself still facing some legal ambiguity that the courts are expected to work out — potentially the U.S. Supreme Court at some point. While the regulators chairman, Mike Selig, has made it an agency priority to fight a full-throated battle in state and federal courts across the country to insist the CFTC is in sole charge of overseeing event contract platforms, a large number of states have pursued the businesses on accusations of illegal sports gambling that should be overseen by the states. Also on Friday, the CFTC issued a notice to extend the regulatory status of Krakens platform, the Kraken Derivatives Exchange, which has been under a “dormant” designation. The last trade was executed on that exchange in early 2025, and









