The classification may support the CFTC’s claim that it has exclusive federal jurisdiction over event contracts offered in regulated forecast markets.
The US Commodity Futures Trading Commission is seeking to clarify the definition of a “swap” amid a jurisdictional battle with state gambling regulators over prediction markets.
Office of Information and Regulatory Affairs Docket shows The agency submitted a proposed rule to expand the definition of “swap” to include event contracts, along with an interim final rule that would exclude casino-style gambling products. Both are under review.
Classification is important factor The CFTC argued That federal law gives it exclusive authority over swaps traded on its regulated exchanges, such as those offered by Polymarket and Kalshi. US state regulators have opposed this position, particularly for sporting event contracts, they argued Subject to state gambling laws.
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