CFTC urges detailed event contract submissions

CFTC warns prediction markets to provide detailed, contract-specific information instead of generic templates, emphasizing transparency and regulatory compliance.

The U.S. Commodity Futures Trading Commission (CFTC) has issued a new warning to prediction markets, urging them to stop using generic certifications and instead provide detailed information for each event contract. The regulator stated that companies must not submit broad, template-style certifications for large sets of contracts. Instead, they are required to specify the terms, settlement methods, data sources, and compliance analysis for every proposed contract permutation. The CFTC clarified that only closely related event contracts may be submitted together as a 'class.' The agency emphasized that current practices of simplified submissions hinder its ability to properly assess regulatory compliance. This marks the second such warning in recent months, reflecting the rapid growth in prediction market volumes and ongoing legal disputes over regulatory oversight. Additionally, the CFTC has extended the inactive status of Kraken Derivatives Exchange while the company considers its future actions.