The US regulator reiterated that prediction markets must provide detailed terms for self-certified event contracts, not template-style filings.
The Commodity Futures Trading Commission (CFTC) issued its second warning this year to prediction markets, demanding stricter compliance in self-certifying event contracts. The agency clarified that platforms must submit specific terms and conditions for each contract, rather than relying on broad, template-style certifications.
The CFTC emphasized that while self-certification remains permitted under current rules, operators must include a concise explanation of compliance for each proposed contract. The warning follows earlier guidance in 2024, signaling ongoing scrutiny of prediction market practices amid broader regulatory discussions.
The advisory did not specify enforcement actions but underscored the CFTC’s role as the primary regulator for these markets. No immediate market reaction was reported.