The Commodity Futures Trading Commission (CFTC) on Thursday issued a pair of actions signaling its intent to build a comprehensive regulatory framework for prediction markets, an industry that has exploded in popularity over the past year.
The agency published an Advance Notice of Proposed Rulemaking (ANPRM) seeking public comment on how existing derivatives law should apply to prediction markets, alongside a staff advisory from the Division of Market Oversight offering guidance to exchanges that list event contracts.
The moves come as the CFTC faces a surge of interest from would-be prediction market operators. Applications for designation as a contract market have more than doubled over the past year, largely from entities looking to run prediction markets exclusively, the agency said.
To continue reading this as well as other DeFi and Web3 news, visit us at thedefiant.io
