On January 20, 2026, the CFTC’s chairman, Michael Selig, announced that the regulator will “future-proof” itself to better navigate new financial technologies like...
Michael Selig to draft new CFTC rules for prediction markets
On January 29, 2026, CFTC Chairman Michael Selig revealed that the commission will draft new rules for the prediction markets industry.
Earlier proposals to restrict trading on sports and political events were withdrawn, as Selig announced that the agency would create clearer regulations for event contracts, stressing that the regulatory confusion hasn’t been serving the public interest.
Selig stated:
“It is time for clear rules and a clear understanding that the CFTC supports lawful innovation in these markets. Consistent with my commitment to fostering responsible innovation in crypto asset markets, I will continue to support the responsible development of event contract markets.”
Selig ordered staff to withdraw a 2024 proposal, which would have banned contracts on sports and political events, and to cancel a 2025 staff advisory that cautioned against offering sports-related event contracts. The chairman said that although the advisory was issued on the staff level simply to raise awareness, it instead caused uncertainty in the markets.
The chairman added:
“Where jurisdictional questions are at issue, the Commission has the expertise and responsibility to defend its exclusive jurisdiction over commodity derivatives. As the new frontier of finance descends upon us, regulators must relentlessly modernize, harmonize, and future-proof their approach to regulation.”
Operators and the Coalition for Prediction Markets (CPM) approved of the CFTC’s position and commented that the creation of new rules would improve market clarity and responsible innovation.
The National Collegiate Athletic Association (NCAA) has urged the Commodity Futures Trading Commission (CFTC) to prohibit prediction markets on college sports, stressing that...
