The chairman of the Commodity Futures Trading Commission (CFTC) has come forward to begin creating a clear path for prediction markets. With the explosion in popularity of the new style of wagering rising at an unprecedented pace, US lawmakers are just now trying to gain footing.
In prepared remarks, Chairman Michael S. Selig said that it was time for “clear rules” around prediction markets:
“It is time for clear rules and a clear understanding that the CFTC supports lawful innovation in these markets.
“Consistent with my commitment to fostering responsible innovation in crypto asset markets, I will continue to support the responsible development of event contract markets.”
He details how the CFTC has withdrawn the 2024 “rule proposal” that would have put a stop to political and sports contracts. It has become a concern for some states in recent months that markets like Kalshi and Polymarket could be side-stepping state gambling laws, as, by technicality, prediction markets are “contracts,” not gambling. However, the CFTC has now made it clear that it could support platforms in their state legal cases in a bid to defend its “exclusive jurisdiction.”
BREAKING: Michael Selig, new CFTC chair, has rescinded the agency's 2024 event contracts rule proposal that would prohibit political and sports-related event contracts + staff letter cautioning operators about possible state action.
— 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 staff to move ahead with creating a framework for prediction markets:
“For too long, the CFTC’s existing framework has proven difficult to apply and has failed our market participants. That is something I intend to fix by establishing clear standards for event contracts that provide certainty to market participants.”
NEW: CFTC will move to withdraw the 2024 rule proposal which seeks to bar sports and political event contracts and will craft new rules clarifying event contracts, per CFTC Chairman Seelig. CFTC will also defend its "exclusive jurisdiction" in court cases going forward.
— Daniel Wallach (@WALLACHLEGAL) January 29, 2026
The third point made is more around “matters currently pending” in the federal districts and circuit courts.
CFTC moves to get more hands on with prediction markets
Selig then closed the topic out by saying:
“Finally, I have directed CFTC staff to work with our counterparts at the SEC to develop a joint interpretation on Title VII definitions.
“This effort would draw clearer lines between certain commodity and security options, CFTC-regulated swaps, and SEC-regulated security-based swaps.
“Clear, coordinated guidance will allow firms to scale products responsibly and reduce the number of innovations that fall into what Chairman Atkins has aptly described as ‘the no man’s land’ between our two agencies.”
After being banned from the US, Polymarket re-entered last year. Kalshi’s sports contracts have been a major money draw, despite the criticism.
STATEMENT from The Coalition for Prediction Markets on @ChairmanSelig’s remarks today at the joint SEC – CFTC Harmonization event:
"We applaud Chairman Selig's statements that the CFTC has 'the expertise and responsibility to defend its exclusive jurisdiction' over event…
— Coalition for Prediction Markets (@PredictAction) January 29, 2026
In response to Selig’s remarks, the Coalition for Prediction Markets posted to X (formerly Twitter) in support of the CFTC chairman:
“We applaud Chairman Selig’s statements that the CFTC has ‘the expertise and responsibility to defend its exclusive jurisdiction’ over event contracts, and we welcome the participation of the Commission in matters where that jurisdiction is under attack.
“By withdrawing uncertain guidance around sports-event contracts and committing to undertake comprehensive rulemaking, the Commission takes a key step to foster market clarity, responsible innovation, and trust in American markets.
“We look forward to working with the CFTC to continue that important mission.”
The Coalition for Prediction Markets is an independent body pushing for fairer rules within the prediction market industry. It’s headed by the ex-Ambassador to the Organisation for Economic Co-operation and Development, Sean Patrick Maloney, who has been in government since Bill Clinton’s administration.
Featured image: Michael Selig via LinkedIn, Kalshi & Polymarket
CFTC chairman announces overhaul to rules for prediction markets ReadWrite.
Hence then, the article about cftc chairman announces overhaul to rules for prediction markets was published today ( ) and is available on read write ( Middle East ) The editorial team at PressBee has edited and verified it, and it may have been modified, fully republished, or quoted. You can read and follow the updates of this news or article from its original source.
Read More Details
Finally We wish PressBee provided you with enough information of ( CFTC chairman announces overhaul to rules for prediction markets )
Also on site :
- TJ Maxx Is Selling a Lookalike of a Popular Anthropologie Doormat Over 3x the Price
- Joanna Gaines Reveals the Awkward Moment Chip’s Proposal Went Wrong
- Musk mulling mega-mergers – Bloomberg