Last week saw some great growth for PRED with alot of valuable feedback coming to place by our members. With our Leaderboard now live let’s discuss things that took place in Prediction Markets over the last week
After nearly two years of regulatory silence, the federal government made its most consequential move yet on March 12. The Commodity Futures Trading Commission published an Advanced Notice of Proposed Rulemaking (ANPRM) seeking public comment on the need to amend or issue new regulations concerning event contracts traded on prediction markets.
The move ended years of regulatory silence on event contracts and followed rapid growth in prediction market platforms used by millions of Americans. The agency signalled it wanted to encourage innovation while enforcing existing compliance obligations
CFTC Chairman Michael Selig was unambiguous about intent: "This begins the process of new rulemaking grounded in a rational and coherent interpretation of the Commodity Exchange Act, while reassuring the American people that the CFTC will exercise its exclusive jurisdiction over prediction markets.”
The CFTC asked public commenters to consider ambiguities around terrorism, assassination, cyber attacks, and whether insider information from federal government employees could affect market integrity.
A 45-day comment window opened immediately, with formal rulemaking expected to take months.
In a striking display of federal discord, lawmakers fired back at the CFTC on the very same day. The Blumenthal-Kim bill was introduced on March 12 — the exact same day as the CFTC ANPRM — explicitly stating that prediction markets are not exempt from state law, a direct legislative counter to the CFTC's stated position of exclusive jurisdiction