The commission is considering a framework to address contracts that are “contrary to the public interest.“
The Commodity Futures Trading Commission (CFTC) is seeking public input on the proposed regulation of prediction markets.
The CFTC explained, “The Commission has continued to observe growth in the number and variety of event contracts listed for trading by CFTC-registered entities, including contracts referencing sporting events. In light of these developments, the proposal would establish a structured framework for evaluating whether such contracts involve an activity enumerated in… the Commodity Exchange Act —activity that involves terrorism, assassination, war, gaming, or conduct that is unlawful under federal or state law—and, if so, whether that contract is contrary to the public interest.“
“The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation,” said CFTC Chairman Michael Selig. “This proposal gives the Commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward.”
The commission also stated, “The proposal sets out a 90-day review process ensuring critical procedural protections and a set of public interest factors the Commission would apply on a contract-by-contract basis.“
As the Lord Leads, Pray with Us…
- For Chairman Selig to be prudent as he presides over the commission and its regulation of commodity futures trading.
- For CFTC commissioners as they seek to ensure contracts for unlawful events are not traded in prediction markets.
Sources: Commodity Futures Trading Commission, Newsmax
