As part of its efforts to maintain the integrity of financial markets, the U.S. Commodity Futures Trading Commission (CFTC) announced measures to regulate event-based prediction markets.
The CFTC Office of Market Oversight issued a detailed technical advisory for the Designated Contract Market (DCM) on Thursday. Organizations ask platforms Strengthen monitoring mechanisms to prevent market manipulation We ensure strict compliance with the regulatory framework of event contracts.
The authorities, led by Michael Selig, stressed that given the explosive popularity of platforms such as Polymarket, operators must proactively fulfill their oversight obligations to ensure contracts are not enforced. As a vehicle for illegal activities and disinformation.
According to Selig, prediction markets are one of the most exciting innovations in financial markets. “But for too long, the CFTC has failed to provide guidance to these markets used by millions of Americans,” he commented in a post by X.
The regulators emphasized that the guidance for CFTC staff is “focused on reminding exchanges of their existing obligations under the Commission’s rules and regulations and generally reminding market participants of the CFTC’s authority regarding insider trading.”
This guidance is only a first step and staff are working diligently towards formal regulation (…) We welcome feedback from the public. We want to do it right and ensure we establish the gold standard for prediction market regulation here in the United States. Prediction markets are here to stay, and under my leadership, I will protect agency jurisdiction over these markets and enable them to thrive in the United States.
Michael Selig CFTC Chairman.
In parallel with the CFTC’s technical guidelines, the US Congress is introducing the DEATH BETS Act. This bicameral bill requires: Completely ban virtual currency gambling As reported by CriptoNoticias, it is associated with acts of violence, war conflicts, and deaths of public figures.
While the CFTC is focused on technical robustness and fraud prevention in event contracts (including in the sports and financial sectors), legislators are trying to draw a clear moral line on which events are suitable for speculation. This dual regulatory offensive marks a turning point for the digital asset sector and decentralized prediction markets.
(Tag Translate)Bitcoin (BTC)
