The U.S. CFTC will release a draft rule for regulating prediction markets, which will be reviewed on a case-by-case basis using criteria such as whether there is "manipulated participation" and "public interest".
CoinFeed reported on June 10th that, according to the Wall Street Journal, the U.S. Commodity Futures Trading Commission (CFTC) will release a new draft set of rules for regulating prediction markets, aiming to grant regulators more explicit authority to block contracts deemed "not in the public interest" or highly manipulable. The new rules will focus on regulating the types of event contracts allowed on platforms including Kalshi, providing clearer boundaries for sports-related betting, and preventing situations where a single participant can excessively influence the outcome. The report points out that regulators have not blanket bans on specific types of contracts in the draft, but rather will review each case based on the criteria of "manipulable participation" and "public interest."