The U.S. Commodity Futures Trading Commission (CFTC) introduced this Wednesday its first proposal for a structured regulatory framework to govern prediction markets within the U.S. legal system. The agency’s chairman, Mike Selig, highlighted that this draft seeks to safeguard the integrity of regulated platforms while simultaneously promoting responsible innovation in the digital financial sector.
The proposal establishes clear guidelines to discern which event contracts could be prohibited. The CFTC will categorize bets based on pure luck and certain sporting events as “gambling,” while recognizing the informational and “price discovery” value of markets linked to legitimate institutional outcomes. Notably, election betting contracts are temporarily excluded from the rigorous 90-day review process, as they are classified as contests rather than conventional wagers.
The next step is to submit the regulatory draft to a public consultation phase over the next 45 days, a fundamental step for the crypto and blockchain industry to present their respective feedback before the final ruling.
Source: https://goo.su/9hAaRNR
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