The chairman of the U.S. CFTC stated that the agency will establish new rules for prediction markets

According to Bloomberg, the chairman of the Commodity Futures Trading Commission (CFTC), Michael Selig, stated that the agency will develop new rules for the prediction market industry while withdrawing the proposal made in 2024 to ban sports and political prediction contracts, as well as a warning document regarding sports contracts released by staff in 2025.

Selig emphasized that the CFTC will support legitimate innovation in this market and reaffirmed its exclusive jurisdiction over commodity derivatives. Selig also mentioned that the CFTC will collaborate with the Securities and Exchange Commission (SEC) to formulate cryptocurrency regulations while cooperating with Congress on the ongoing digital asset legislation. He pointed out that although regulators can issue rules, formal legislation is still necessary.