U.S. CFTC moves to fold event contracts into swaps regulations as legal fight rages
Source: CoinDesk ·
From the source
The derivatives regulator is proposing a formal rule to include certain contracts traded on platforms like Kalshi's as swaps that require the agency's oversight. The U.S. Commodity Futures Trading Commission is making its pursuit of exclusive prediction markets authority a formal effort, putting a new definition in place on Friday and proposing other changes that collectively seek to secure the legal footing of events contracts as "swaps" — a transaction under the CFTC's authority and outside of state gambling regulators' reach. The CFTC is trying to define the kind of sports wagering that are not swaps — contractual exchanges between parties that falls into the agency's federal jurisdiction — while maintaining that event contracts still fit the definition of swaps under the law, and as a result belong in CFTC oversight. Casino-style gambling will be held outside that swap definition, according to the interim final rule issued by the agency. And event contracts belong well within…