Summary
- The US CFTC said it is moving to establish a clear regulatory framework for the prediction market industry, which has grown into a multi-billion-dollar sector.
- CFTC Chairman Michael Selig said there is a need for rules and an understanding that the CFTC supports lawful innovation in prediction markets.
- He said this formalizes a policy direction to support the sound development of the virtual-asset (cryptocurrency) and event contract (Event Contract) markets and to manage them within an institutional regulatory framework.
The US Commodity Futures Trading Commission (CFTC) is moving to put in place a clear regulatory framework for the prediction-market industry, which has grown into a multi-billion-dollar sector.
According to Bloomberg on the 29th (local time), CFTC Chairman Michael Selig said regarding prediction markets, "It is now necessary to have rules and an understanding that clearly state the CFTC supports lawful innovation in prediction markets."
He added, "In line with our commitment to foster responsible innovation in the virtual-asset (cryptocurrency) market, we will support the sound development of the event contract (Event Contract) market."
The remarks are interpreted as formalizing the CFTC’s policy direction to manage the fast-growing prediction market within an institutional regulatory framework.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
