CFTC Proposes New Prediction Market Regulations, Permitting Most Sports Betting While Restricting Manipulation Risks

According to The Wall Street Journal, the U.S. Commodity Futures Trading Commission (CFTC) will formally propose new regulatory rules for prediction markets on Wednesday. The proposed rules would empower regulators to prohibit prediction contracts that are not in the public interest or pose a clear risk of manipulation—especially where a single individual could significantly influence the outcome. The new rules will provide a clearer compliance framework for prediction market platforms such as Kalshi, while continuing to permit most sports-related betting contracts.