The chairman of the Commodity Futures Buying and selling Fee (CFTC) has come ahead to start creating a transparent path for prediction markets. With the explosion in reputation of the brand new type of wagering rising at an unprecedented tempo, US lawmakers are simply now attempting to achieve footing.
In prepared remarks, Chairman Michael S. Selig stated that it was time for “clear guidelines” round prediction markets:
“It’s time for clear guidelines and a transparent understanding that the CFTC helps lawful innovation in these markets.
“According to my dedication to fostering accountable innovation in crypto asset markets, I’ll proceed to assist the accountable growth of occasion contract markets.”
He particulars how the CFTC has withdrawn the 2024 “rule proposal” that might have put a cease to political and sports activities contracts. It has turn out to be a concern for some states in recent months that markets like Kalshi and Polymarket could possibly be side-stepping state gambling laws, as, by technicality, prediction markets are “contracts,” not playing. Nevertheless, the CFTC has now made it clear that it may assist platforms of their state authorized instances in a bid to defend its “unique jurisdiction.”
BREAKING: Michael Selig, new CFTC chair, has rescinded the company's 2024 occasion contracts rule proposal that might prohibit political and sports-related occasion contracts + employees letter cautioning operators about doable state motion.
— Dan Bernstein (@dan_bernstein_) January 29, 2026
He claims this “contributed to uncertainty in our markets.”
Selig then moved on to state that he has directed employees to maneuver forward with making a framework for prediction markets:
“For too lengthy, the CFTC’s present framework has confirmed troublesome to use and has failed our market individuals. That’s one thing I intend to repair by establishing clear requirements for occasion contracts that present certainty to market individuals.”
NEW: CFTC will transfer to withdraw the 2024 rule proposal which seeks to bar sports activities and political occasion contracts and can craft new guidelines clarifying occasion contracts, per CFTC Chairman Seelig. CFTC may also defend its "unique jurisdiction" in court docket instances going ahead.
— Daniel Wallach (@WALLACHLEGAL) January 29, 2026
The third level made is extra round “issues at present pending” within the federal districts and circuit courts.
CFTC strikes to get extra arms on with prediction markets
Selig then closed the subject out by saying:
“Lastly, I’ve directed CFTC employees to work with our counterparts on the SEC to develop a joint interpretation on Title VII definitions.
“This effort would draw clearer traces between sure commodity and safety choices, CFTC-regulated swaps, and SEC-regulated security-based swaps.
“Clear, coordinated steering will permit corporations to scale merchandise responsibly and cut back the variety of improvements that fall into what Chairman Atkins has aptly described as ‘the no man’s land’ between our two companies.”
After being banned from the US, Polymarket re-entered last year. Kalshi’s sports activities contracts have been a major money draw, regardless of the criticism.
STATEMENT from The Coalition for Prediction Markets on @ChairmanSelig’s remarks immediately on the joint SEC – CFTC Harmonization occasion:
"We applaud Chairman Selig's statements that the CFTC has 'the experience and duty to defend its unique jurisdiction' over occasion…
— Coalition for Prediction Markets (@PredictAction) January 29, 2026
In response to Selig’s remarks, the Coalition for Prediction Markets posted to X (previously Twitter) in assist of the CFTC chairman:
“We applaud Chairman Selig’s statements that the CFTC has ‘the experience and duty to defend its unique jurisdiction’ over occasion contracts, and we welcome the participation of the Fee in issues the place that jurisdiction is below assault.
“By withdrawing unsure steering round sports-event contracts and committing to undertake complete rulemaking, the Fee takes a key step to foster market readability, accountable innovation, and belief in American markets.
“We stay up for working with the CFTC to proceed that vital mission.”
The Coalition for Prediction Markets is an unbiased physique pushing for fairer guidelines throughout the prediction market trade. It’s headed by the ex-Ambassador to the Organisation for Financial Co-operation and Growth, Sean Patrick Maloney, who has been in authorities since Invoice Clinton’s administration.
Featured picture: Michael Selig by way of LinkedIn, Kalshi & Polymarket
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