Overview
- The CFTC’s Division of Market Oversight and Division of Clearing and Risk issued the Jan. 8 no-action letter covering event-based products.
- Relief applies only to certain binary and bounded contracts that settle on clear outcomes.
- Eligibility is restricted to contracts traded on Bitnomial Exchange and cleared through Bitnomial Clearinghouse.
- All contracts must be fully collateralized, with public trading data and records available to regulators on request.
- The decision opens a regulated pathway for U.S. prediction markets and extends Bitnomial’s offerings beyond futures and options.