New CFTC advisory signals ‘pragmatic shift’ for sports prediction markets, says expert
A new advisory from the US Commodity Futures Trading Commission (CFTC) could potentially reshape the debate around sports prediction markets. As platforms continue to offer contracts tied to real-world outcomes, from elections to the Super Bowl, regulators are signaling they may be willing to oversee the industry rather than shut it down altogether. For years, prediction markets, or the like, have tested the edges of US financial regulation. That said, the CFTC’s latest announcement does not exactly settle that discussion. Instead, it sketches out how exchanges should manage sports-related contracts if they are ultimately allowed to exist. The advisory represents a pragmatic shift. By referring to Designated Contract Market (DCM) Core Principles, the CFTC is saying ‘if this is allowed, it must be done like other products in our markets.’ In practical terms, this signals that the Commission is open to these listings if the courts determine that they are legal and the CFTC has authority over them. Peter Sanchez Guarda, former CFTC Special Counsel To some observers, the tone matters. Peter Sanchez Guarda, who …
