CFTC Streamlines Swap Data Reporting for Prediction Markets
- The CFTC issued a no-action letter to simplify swap data reporting for prediction markets.
- Nineteen platforms, including Polymarket US and Kalshi, benefit from this regulatory relief.
- Event contracts are now classified like futures, easing reporting requirements.
- The guidance was jointly issued by the Division of Market Oversight and Division of Clearing and Risk.
- CFTC Chair Michael Selig asserts federal authority over prediction markets against state gambling laws.
The CFTC’s decision allows prediction market platforms to report event contracts as futures rather than swaps, simplifying compliance processes for operators like Polymarket US and Kalshi. This move reflects growing institutional demand for these markets beyond traditional political forecasting.
By streamlining these regulations, the CFTC aims to prevent offshore movement of prediction markets and maintain regulatory oversight amid state-level challenges over jurisdictional authority. Source
