The US Commodity Futures Trading Commission is taking steps that could strengthen its claim of exclusive federal authority over event contracts traded on regulated prediction-market exchanges, according to Cointelegraph. The move comes amid an ongoing dispute with state gambling regulators, particularly over contracts tied to sports events.
Proposed definition would cover event contracts
A docket maintained by the Office of Information and Regulatory Affairs shows that the CFTC has submitted a proposed rule to broaden the definition of a “swap” so it would include event contracts. The filing is currently under review, meaning the proposal has not yet become a final rule.
The agency has also submitted an interim final rule intended to exclude casino-style gambling products from the definition. Taken together, the two measures would seek to distinguish event-based financial contracts traded on regulated markets from products that resemble traditional casino gambling.
A swap is a financial contract whose value is linked to an underlying event, asset or outcome. In this case, the classification would determine which regulator has authority over contracts that allow participants to take positions on whether a particular event will occur.
Federal and state regulators contest authority
The CFTC’s position is that federal law gives it exclusive jurisdiction over swaps traded on exchanges it regulates. The agency has applied that argument to prediction-market platforms such as Polymarket and Kalshi, which offer contracts based on the outcomes of events.
State regulators have challenged that interpretation. They have argued that at least some event contracts—especially those connected with sports—fall under state gambling laws rather than federal commodities regulation.
The disagreement is significant because the regulatory classification can affect which rules apply to a product, which agency can supervise it and whether an exchange can offer it in a particular market. A decision to treat event contracts as swaps would support the CFTC’s position in the jurisdictional dispute, while the exclusion for casino-style products would indicate that not every betting-like offering should receive the same treatment.
The filing arrives as the legal conflict over prediction markets continues. Cointelegraph also reported that Kalshi lost an appeal, a development that could set up a potential US Supreme Court case. The source material does not state how the newly submitted rules would affect that proceeding.
Moneyiar market picture
Moneyiar data at 9:14 a.m. on October 1, 2026, showed the following selected digital assets:
- OriginTrail (TRAC): $0.4778198394, up 13.28% over 24 hours and 32.78% over seven days.
- RedStone (RED): $0.1819948485, up 10.24% over 24 hours and 19.84% over seven days.
- Ontology (ONT): $0.0587398221, up 1.08% over 24 hours and 6.73% over seven days.
Moneyiar’s Catizen (CATI) data, recorded at 9:53 p.m. on September 25, 2026, showed a price of $0.0643736921, a 24-hour increase of 5.21% and a seven-day decline of 2.63%. These market figures describe selected cryptoassets and do not indicate how markets have reacted to the CFTC’s regulatory filings.
