2026-11854Proposed RuleWallet

Government Draws the Line on Prediction Market Wagers

Published Date: 6/12/2026

Proposed Rule

Summary

The Commodity Futures Trading Commission is updating rules about prediction markets—those fun event-based betting platforms—to make sure some types of contracts that might hurt the public can’t be traded or cleared. These changes clarify how the Commission decides what’s okay and add clear definitions to keep things fair and organized. If you’re involved in these markets, get ready to share your thoughts by July 27, 2026!

Analyzed Economic Effects

3 provisions identified: 2 benefits, 0 costs, 1 mixed.

Some Event Contracts Can Be Blocked

The CFTC proposes that it may block prediction-market event contracts from being listed or cleared if the contracts 'involve' certain activities (including activity unlawful under Federal or State law, terrorism, assassination, war, gaming, or similar activities). If the Commission finds an event contract is contrary to the public interest, that contract may not be listed for trading or made available for clearing on a CFTC-registered entity.

New Public‑Interest Criteria For Decisions

The CFTC proposes specific factors it would use when deciding whether a contract is contrary to the public interest, including price discovery and information-aggregation utility, threats to market integrity, and compliance or self-regulatory challenges. The proposal also includes factors tailored to unlawful activity, terrorism/assassination/war, and gaming to guide those public-interest determinations.

Definitions For 'Gaming' and 'Involves' Added

The proposal adds a definition of the term 'gaming' and a rule clarifying when event contracts 'involve' an underlying activity. These definitions and the 'involves' standard will determine whether certain event contracts fall within the Special Rule and thus could be subject to a public-interest prohibition.

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Key Dates

Published Date
Comments Due
6/12/2026
7/27/2026

Department and Agencies

Department
Independent Agency
Agency
Commodity Futures Trading Commission
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