<h2 id="crypto-news">Crypto News</h2>
CFTC Chairman Michael Selig announced Thursday the agency will develop new rules governing prediction markets, <a href="https://x.com/business/status/2016951690625184215?s=20" rel="noopener noreferrer nofollow">Bloomberg reports</a>. The move reverses previous regulatory approaches as platforms like Polymarket and Kalshi have experienced rapid growth over the past year.
Selig committed to supporting responsible development of event contract markets during prepared remarks at a joint event with SEC leadership. The chairman said clear rules would demonstrate CFTC support for lawful innovation in prediction markets, aligning with his broader approach to digital asset regulation.
Prediction market platforms allow users to purchase positions on future events ranging from government operations to entertainment industry outcomes. Trading activity has surged despite opposition from some state gaming regulators, with the industry reaching multibillion-dollar valuations through 2024 and 2025.
The CFTC chair directed staff to withdraw a 2024 proposal from former Chairman Rostin Behnam that sought to ban sports- and politics-related wagers on prediction platforms. Selig also rescinded a 2025 staff advisory cautioning businesses against offering sports-related contracts due to ongoing litigation.
Selig stated the staff-level advisory was intended to raise awareness about litigation but instead contributed to market uncertainty. The withdrawal signals a different regulatory direction under new CFTC leadership compared to the previous administration's approach to event contract markets.
The agency previously barred Polymarket from serving U.S. users for operating as an unlicensed binary options trading platform. That restriction was lifted last year as the Trump administration permitted several firms to enter the prediction markets sector.
Recent approvals include Gemini Titan, Polymarket US, MIAX Derivatives Exchange, and Bitnomial. Truth Social, backed by Trump, is exploring predictions capabilities through a Crypto.com partnership, expanding the industry's presence beyond specialized platforms into mainstream social networks.
Selig acknowledged that existing regulatory frameworks have proven difficult to apply for market participants. The chairman said he intends to establish clear standards for event contracts that provide certainty, addressing longstanding complaints from industry operators about regulatory ambiguity.
The announcement came during a panel focused on cryptocurrency regulation and coordination with SEC Chairman Paul Atkins. Both regulators emphasized their commitment to modernizing oversight approaches while Congress works on comprehensive digital asset market structure legislation.

CFTC Plans New Rules for Prediction Market Platforms, Bloomberg Reports

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