Trump administration unveils new prediction market regulations
Federal regulators on Wednesday unveiled a sweeping proposal to establish new rules for the rapidly growing prediction markets industry as legal battles continue over whether the platforms constitute federally regulated financial markets or state-regulated gambling.
TL;DR
- Federal regulators have proposed new rules for the prediction markets industry.
- The Commodity Futures Trading Commission (CFTC) released a 267-page notice of proposed rulemaking.
- The proposal addresses legal battles over whether prediction platforms are federally regulated financial markets or state-regulated gambling.
- Trading volume in federally regulated prediction markets surpassed $25 billion in 2025.
- Sports-related event contracts would generally be permitted, including outcomes like final scores and tournament advancement.
- Micro-event contracts tied to specific plays or moments during a game would be prohibited.