By Chris Prentice
NEW YORK, March 3 (Reuters) – The U.S. Commodity Futures Trading Commission has sent a rulemaking plan for prediction markets to the President’s Office of Management and Budget, kicking off the process to write new rules for the controversial, but fast-growing markets.
WHY IT’S IMPORTANT
Trading on platforms such as Kalshi and Polymarket is facing backlash after bets on the potential death of Iran’s Supreme Leader Ayatollah Ali Khamenei have sparked threats from U.S. lawmakers to outlaw the wagers.
The platforms also face pushback from state gaming regulators, and the CFTC under its new Republican Chairman is trying to establish its jurisdiction over such markets.
CONTEXT
The Budget office’s regulatory affairs website showed the CFTC’s prediction markets regulation had been submitted on Monday and is in “prerule” stage, but offered no further details.
The move signals the beginning of the rulemaking process.
(Reporting by Chris Prentice)
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