The Commodity Futures Trading Commission (CFTC) has issued an Advanced Notice of Proposed Rulemaking (ANPRM) to gather public feedback on whether new or revised regulations are needed for event-based contracts traded on prediction markets. Announced on March 12, 2026, the initiative signals the regulator’s intent to examine how such contracts fit within existing derivatives oversight under the Commodity Exchange Act.
The consultation seeks input on a range of issues, including how statutory principles apply to prediction markets, which types of event contracts could be deemed against the public interest, and the broader economic implications of these instruments. The move reflects increasing regulatory attention on markets that allow participants to trade on the outcomes of real-world events.
CFTC Chairman Michael S. Selig emphasized the importance of the effort, stating, “Today’s action is an important step in the Commission’s continued effort to promote responsible innovation in our derivatives markets.” He added that the process aims to ensure clarity and oversight, noting it will provide “a rational and coherent interpretation of the Commodity Exchange Act” while reaffirming the agency’s authority over prediction markets.
The Commission plans to use the feedback received to determine potential next steps, including formal rulemaking. The consultation marks an early stage in shaping a regulatory framework that balances market development with investor protection and public interest considerations.
