CFTC withdraws prediction market ban, enabling growth

The CFTC has withdrawn its proposal to ban prediction markets, allowing platforms to operate freely and signaling a major regulatory shift in the U.S.

The U.S. Commodity Futures Trading Commission (CFTC) has officially withdrawn its proposal to ban political and sports prediction markets, reversing policies from the previous administration. This move marks a major shift, enabling platforms like Kalshi and Polymarket to continue offering event-based trading without the threat of a federal ban. Under Chairman Mike Selig, the CFTC criticized the former approach as flawed and committed to developing reasonable, market-friendly rules for prediction markets. The agency also rescinded earlier guidance that had caused confusion among businesses and investors. By removing regulatory barriers, the CFTC aims to provide legal certainty and foster the growth of blockchain-based and traditional prediction markets in the U.S., signaling a clearer regulatory direction for the industry.