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CFTC Rescinds Event-Contract Curbs, Launches Crypto Coordination With SEC

Fresh rulemaking on prediction markets alongside a joint crypto taxonomy seek to replace uncertainty with clearer jurisdiction.

Overview

  • Saying prior guidance fueled confusion, Chair Michael Selig ordered withdrawal of the 2024 proposal to bar political and sports event contracts and rescinded a 2025 staff advisory on sports markets.
  • The CFTC will draft new event‑contract regulations to set clear standards for prediction markets, with the agency signaling it may actively defend its derivatives jurisdiction in ongoing court fights.
  • Selig and SEC Chair Paul Atkins unveiled “Project Crypto,” a formal partnership to harmonize digital‑asset oversight and consider codifying a shared taxonomy while Congress advances market‑structure legislation.
  • Selig backed Atkins’s view that many crypto tokens do not constitute securities, as both agencies pursue coordinated rules intended to reduce duplicative requirements and keep activity onshore.
  • Litigation by states and tribal governments against platforms such as Kalshi and Polymarket continues, including a recent Massachusetts ruling limiting Kalshi’s sports offerings, so uncertainty persists until new rules are finalized.