The U.S. CFTC submitted two regulatory proposals to the White House: one to classify event contracts as swaps and another to exclude casino-style gaming products from swap definitions. The move responds to recent court rulings and pending Supreme Court petitions on swap classification.
The CFTC submitted two rules to the White House for review that would define event contracts as swaps and exclude them from gambling regulations, countering state legal challenges against prediction market platforms like Kalshi. The moves aim to establish federal regulatory authority over prediction markets amid conflicting federal court rulings on whether such contracts constitute swaps or fall under state gambling laws.