The Commodity Futures Trading Commission (CFTC) has proposed a significant expansion of the definition of “swaps,” a move that would bring prediction markets into its regulatory purview. This proposed change specifically targets event contracts that allow trading on the outcomes of sporting, political, cultural, and weather-related events. By encompassing these diverse markets, the CFTC aims to enhance oversight and potentially introduce new rules governing the trading of contracts tied to real-world occurrences, signaling a major shift in how these platforms will operate under federal regulation.
Adapted from: WSJ.com: Markets
