The Acting Chairman of the U.S. Commodity Futures Trading Commission (CFTC), Caroline Pham is reconsidering regulations on prediction markets, as she plans to address the legal uncertainties surrounding Polymarket and Kalshi.
US CFTC Chairman Pham: Roundtable to Reboot Regulations on Prediction Markets
In an official press statement, CFTC’s Acting Head recently shared that the CFTC’s legal campaign against these platforms can’t be easily ended, hence, she is preparing to hold a roundtable next month with experts to help shape a clearer regulatory framework.
.@CFTC Announces Prediction Markets Roundtable: https://t.co/ErL6W0c3zY
— CFTC (@CFTC) February 5, 2025
Pham acknowledged that the CFTC has made it difficult to reverse its stance on prediction markets, especially with past legislative actions under former Chairman Rostin Behnam. Pham also criticized the commission’s previous anti-innovation policies, stating they have created significant legal uncertainty, especially regarding event contracts tied to sports and political outcomes. According to Pham, these old interpretations have obstructed the agency’s ability to provide effective and practical oversight.
Pham added that the roundtable is an important first step in creating a balanced regulatory environment that will “both foster thriving prediction markets and protect retail customers from binary options fraud such as deceptive and abusive marketing and sales practices.”
The roundtable will be held in the Conference Center at the CFTC’s headquarters at Three Lafayette Centre, 1155 21st Street N.W., Washington, D.C. Additional information on the roundtable will be released once details are confirmed.
Notably, the CFTC’s initial court defeat against Kalshi, which allowed the firm to offer election-related contracts, has led to an appeal. Kalshi has argued that only Congress can regulate such betting. Meanwhile, the CFTC has requested further details from companies like Crypto.com and Kalshi regarding their Super Bowl-related event contracts, seeking clarification on their compliance with derivatives regulations.
In January, the CFTC subjected Crypto.com’s sports-related contracts to a specialized regulatory review. A final vote on whether to restrict these contracts is expected by mid-April, although they remain available for trading in the meantime.
Also Read: Crypto.com Secures In-Principle MiCA License in EU
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