#PredictionMarketsCFTCBacking
The US Commodity Futures Trading Commission (CFTC) is backing prediction markets, asserting its exclusive federal authority over these platforms. CFTC Chairman Michael Selig argues that prediction markets fall under federal derivatives law, not state gambling rules, and has filed an amicus brief in support of (link unavailable) in its dispute with Nevada regulators.
*Key Developments:*
- *CFTC's Stance:* Selig emphasizes that prediction markets are legitimate derivatives, providing useful functions for society, and should be regulated federally.
- *State Opposition:* Some states, like Utah, argue prediction markets are akin to gambling and should be regulated locally.
- *Regulatory Shift:* The CFTC is withdrawing prior restrictive proposals and working on new rules to provide clarity for prediction markets.
This move signals a potential shift in the regulatory landscape for prediction markets.
