War, High School Football, and Refs: Proposed Prediction Market Bans
The Commodity Futures Trading Commission released its proposal for new federal rules related to prediction markets and outlined some contracts that would likely not be approved under the guidelines.
TL;DR
- The CFTC has released a proposed rule for federal regulation of prediction markets.
- Prediction markets allow users to buy shares in possible outcomes of various events.
- The proposed rules do not ban specific types of contracts, such as those for elections or sports.
- The CFTC will individually determine the approval of each contract.
- Certain transactions are likely to be found contrary to the public interest.