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      CFTC Submits Prediction Market Rules to White House for Review

      On September 30, 2026, the Commodity Futures Trading Commission (CFTC) submitted two rules regarding prediction markets to the White House Office of Management and Budget for review. This move represents the agency's effort to assert federal jurisdiction over prediction markets, which have been a point of contention with several states that argue these markets fall under state gambling laws.

      The first proposed rule aims to redefine the term 'swap' to explicitly include event contracts, which are the basis for prediction markets. By doing so, the CFTC seeks to ensure that these contracts are regulated under the Commodity Exchange Act, which the agency administers. The second rule, an interim final rule, would exclude casino-style gambling products from being classified as swaps, creating a distinction that could impact the regulatory landscape.

      Several states, including Ohio and Tennessee, are currently engaged in litigation with the CFTC, arguing that sports event contracts violate their state gambling laws. New Jersey has escalated the issue by requesting a review from the Supreme Court, which could ultimately determine the jurisdictional authority over these contracts. The outcome of the White House review of the CFTC's proposed rules may further complicate this ongoing legal battle, as states may find themselves contesting not only the agency's interpretations but also its formal regulations.

      © 2026 KLEA News. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

      Source: KLEA News

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