2026-05105Proposed RuleWallet

CFTC Seeks Ideas on Regulating Bets in Prediction Markets Nationwide

Published Date: 3/16/2026

Proposed Rule

Summary

The Commodity Futures Trading Commission (CFTC) is asking for your thoughts on prediction markets—places where people bet on future events. They want to know what rules should apply, which bets might be off-limits, and how these markets impact everyone. If you have ideas, send them by April 30, 2026, because this could lead to new rules that affect traders and the public.

Analyzed Economic Effects

6 provisions identified: 1 benefits, 4 costs, 1 mixed.

Potential Introduction of Margin Trading

Event contracts are currently described as fully collateralized, but the Commission is explicitly asking whether prediction markets should be permitted to offer trading on margin, and whether margin rules should differ for retail versus institutional customers. If adopted, margin trading could let traders take leveraged positions subject to margin calls and disclosure requirements.

DCM Registration Required for Public Trading

If a prediction market offers swaps or futures contracts for trading by the general public, it must register with the CFTC as a designated contract market (DCM). This registration requirement is described in the Commodity Exchange Act and is already the Commission's position for prediction markets that list such contracts.

Possible Bans on Certain Event Contracts

Under CEA section 5c(c)(5)(C), the Commission may determine that event contracts are contrary to the public interest and prohibit listing if they involve unlawful activity, terrorism, assassination, war, gaming, or other similar activities. The Commission is asking for comment on the scope and application of those prohibitions.

Swap Reporting and Public Price Data Questions

The Commission asks whether event-contract swaps should be reported to swap data repositories and whether transaction and pricing data should be made publicly available to enhance price discovery, including whether public identifiers like CUSIPs or ISINs are appropriate.

Application of DCM/DCO Core Principles

The Commission is evaluating how existing DCM and DCO Core Principles (access rules, dispute resolution, anti-manipulation, surveillance, position limits, risk management, and system safeguards) should apply to prediction markets and to clearing of event contracts.

SEF Swap Trading Is Institutional-Only

Swap trading on a swap execution facility (SEF) is not available to the general public and is limited to institutional investors defined as "eligible contract participants." Retail traders cannot access swap trading on SEFs under the Commission's current description.

Your PRIA Score

Score Hidden

Personalized for You

How does this regulation affect your finances?

Sign up for a PRIA Policy Scan to see your personalized alignment score for this federal register document and every other regulation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.

Free to start

Key Dates

Published Date
Comments Due
3/16/2026
4/30/2026

Department and Agencies

Department
Independent Agency
Agency
Commodity Futures Trading Commission
Source: View HTML

Related Federal Register Documents

Previous / Next Documents

Back to Federal Register

Take It Personal

Get Your Personalized Policy View

Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.

Already have an account? Sign in