CFTC Chairman: To Issue Predictive Market Regulatory Guidelines, Establishing Clear Rules for Novel Event Contracts

Odaily News: Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated in a post, "Today, we are taking action to issue clear guidance for prediction markets, helping trading platforms understand the CFTC's expectations for new contract listings. We are taking on the responsibility of ensuring there are transparent rules for this asset class."

In an interview with CNBC, Mike Selig said, "Prediction markets are a rapidly evolving field, which is why we are taking action today to issue some clear guidance for our trading platforms. Our trading platforms self-certify contracts and have their own rulebooks; they need a clear understanding of the CFTC's expectations. Therefore, we will issue this guidance in clear text for trading platforms to follow. Additionally, later today we will also issue an advance notice of proposed rulemaking. We intend to establish clear rules of conduct for this new asset class and new market. It is very important to ensure there is no manipulation, insider trading, or various abuses in the derivatives markets. Therefore, we will take on the responsibility to ensure there are clear rules of conduct for these new asset classes."