The head of the Commodity Futures Trading Commission said the agency has withdrawn a Biden-era proposal that called for prohibiting sports and politics-related wagers on prediction markets.
“The 2024 event contracts proposal reflected the prior administration’s frolic into merit regulation with an outright prohibition on political contracts ahead of the 2024 presidential election,” CFTC Chairman Michael Selig said in a statement.
Trading on prediction markets has surged since the agency lost a challenge in 2024 to keep the wagers at bay. Selig announced last week the agency will write new rules for the multi-billion dollar industry, which allows participants to bet on the outcome of a wide range of future events.
Some state regulators and Native American groups have objected to the federally-regulated platforms, arguing many of the wagers amount to sports bets that fall under their jurisdiction rather than the CFTC. Selig has said the agency would defend its “exclusive jurisdiction” over commodity derivatives.
Selig also said Wednesday that staff had withdrawn a 2025 advisory cautioning businesses against offering sports-related event contracts due to ongoing litigation.
