CFTC Withdraws Proposal Banning Prediction Market Sports Betting

The head of the Commodity Futures Trading Commission said the agency has withdrawn a Biden-era proposal that called for prohibiting sports and politics-related wagers on prediction markets.

“The 2024 event contracts proposal reflected the prior administration’s frolic into merit regulation with an outright prohibition on political contracts ahead of the 2024 presidential election,” CFTC Chairman Michael Selig said in a statement.

Trading on prediction markets has surged since the agency lost a challenge in 2024 to keep the wagers at bay. Selig announced last week the agency will write new rules for the multi-billion dollar industry, which allows participants ...