Source: Decrypt
Published by source: Sep 30, 2026, 06:39 PM UTC
The Commodity Futures Trading Commission has sent two proposed rules to the White House that would redefine 'swap' to include event contracts, aiming to cement its regulatory authority over prediction markets. One rule would explicitly include event contracts as swaps, while another would exclude 'casino-style gambling products,' with both awaiting further review and public comment.
On September 28, the Commodity Futures Trading Commission (CFTC) submitted two rules to the Office of Information and Regulatory Affairs at the White House, seeking to clarify its jurisdiction over prediction markets such as Kalshi and Polymarket. The first proposed rule (RIN 3038-AF82) would further define 'swap' to explicitly cover event contracts, subjecting them to CFTC oversight and public comment. The second, an interim final rule (RIN 3038-AF81), would exclude 'casino-style gambling products' from the swap definition and could take effect upon approval. The CFTC classified both rules as not economically significant, and their full texts have not yet been released. This regulatory move follows conflicting court decisions and ongoing legal disputes between the CFTC, state regulators, and prediction market operators over whether event contracts constitute swaps or illegal gambling. The CFTC's actions are part of a broader trend of regulators setting crypto policy through rulemaking rather than waiting for congressional action.