CFTC to propose rules banning manipulative prediction market bets
- Source
- Wall Street Journal
- Time
- 12:59 PM
- Weight
- 94/100
The U.S. Commodity Futures Trading Commission (CFTC) has moved to propose new regulations that would effectively ban derivatives contracts based on the outcome of political elections, sporting events, and other "public interest" contests.
The proposal seeks to clarify which types of event contracts are considered "gaming" and therefore unsuitable for regulated exchanges. This initiative comes amid a significant rise in the popularity of prediction markets, where users trade on the probability of real-world events.