CFTC Moves to Classify Prediction Market Contracts as Swaps Amid State Pushback

TLDR The CFTC issued an interim final rule and proposed a new rule to classify event contracts as swaps under its jurisdiction. Casino-style gambling products are excluded from the swap definition under the new interim rule. The proposed rule covers event contracts based on sports, politics, culture, and weather. States and former officials have objected and brought the matter to the Supreme Court. Companies like Kalshi and Robinhood support the CFTC’s claim to exclusive oversight. The Commodity Futures Trading Commission has taken new steps to secure its authority over prediction markets.

Source: CoinCentral