The Commodity Futures Trading Commission has drawn a formal line between prediction markets and gambling, claiming the first for itself and leaving the second outside federal derivatives law.
The Commodity Futures Trading Commission has drawn a formal line between prediction markets and gambling, claiming the first for itself and leaving the second outside federal derivatives law.
The agency issued two measures on Friday. One is a proposed rule that would expressly add event contracts, including those tied to sports, politics, cultural events and weather, to the legal definition of a “swap.” The other is an interim final rule, effective as soon as it is published, that excludes casino-style gambling, including sportsbook wagers and casino games, from that definition.
