Overview
- Chair Mike Selig formally withdrew the 2024 proposal that sought to classify political, sports, and war-related event contracts as contrary to the public interest.
- The CFTC also rescinded a September 2025 staff advisory on sports event contracts after concluding it created confusion about litigation risks.
- Selig criticized the prior effort as a "frolic into merit regulation" and directed staff to draft a new event-contracts rule grounded in the Commodity Exchange Act.
- Platforms such as Kalshi and Polymarket are seen as beneficiaries of the shift, with growing interest from firms like Coinbase and Cboe reported by industry outlets.
- State-level actions against event contracts continue in multiple jurisdictions, and prior court rulings that allowed Kalshi to list election markets frame the backdrop as Congress weighs broader market-structure legislation.