CFTC Prediction Market Rules Draw 1,500+ Mixed Responses

The Commodity Futures Trading Commission (CFTC) received more than 1,500 public responses to its proposed prediction market rules. The CFTC is a US federal agency that regulates derivatives markets, including futures and options contracts. The comment period closed on 01 May 2026. The CFTC published the proposed rules in the Federal Register on 16 March 2026, opening a formal public consultation period.

Kalshi supports federal oversight of event contractsKalshi, a CFTC-regulated prediction market platform, submitted a letter supporting continued federal oversight. A prediction market is a platform where users buy and sell contracts based on the outcome of future events. Kalshi's Co-founder and Chief Operating Officer, Luana Lopes Lara, described the CFTC's existing regulations as "well-designed and effective" in the letter submitted on 01 May 2026.

"CFTC's regulations are well-designed and effective, urging guidance to ensure that the universe of event contracts can continue to be listed, traded, and overseen by the Commission", 01 May 2026. — Luana Lopes Lara, Co-founder & COO, Kalshi

State gaming regulators oppose CFTC jurisdictionState-level gambling regulators took the opposite position. The Pennsylvania Gaming Control Board submitted a letter arguing that the CFTC's approach allows prediction market operators to avoid state gambling laws. Executive Director Kevin O'Toole stated that the agency's stance permits platforms "to masquerade as unregulated sportsbooks", according to his 01 May 2026 submission.

"to masquerade as unregulated sportsbooks", 01 May 2026. — Kevin O'Toole, Executive Director, Pennsylvania Gaming Control Board

US Senate bans members from using prediction marketsThe US Senate passed a ban prohibiting its members and staff from using prediction market platforms. Following the ban, both Kalshi and Polymarket stated they had taken steps to prevent insider trading and had blocked politicians from using their platforms. The CFTC's own Enforcement Division issued an advisory in February 2026 designating insider trading on prediction markets as an active enforcement priority. US Senate bans members from using prediction marketsThe US Senate passed a ban prohibiting its members and staff from using prediction market platforms. Following the ban, both Kalshi and Polymarket stated they had taken steps to prevent insider trading and had blocked politicians from using their platforms. The CFTC's own Enforcement Division issued an advisory in February 2026 designating insider trading on prediction markets as an active enforcement priority. The US Senate passed a ban prohibiting its members and staff from using prediction market platforms. Following the ban, both Kalshi and Polymarket stated they had taken steps to prevent insider trading and had blocked politicians from using their platforms. The CFTC's own Enforcement Division issued an advisory in February 2026 designating insider trading on prediction markets as an active enforcement priority. Cryptocurrencies are highly volatile and involve significant risk. You may lose part or all of your investment. All information on Coinpaprika is provided for informational purposes only and does not constitute financial or investment advice. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Coinpaprika is not liable for any losses resulting from the use of this information.