Summary
- The U.S. CFTC said it has strongly raised the need to regulate prediction markets.
- A CFTC commissioner warned that if prediction-market platforms are not brought within the regulatory perimeter, an FTX-style collapse could be repeated.
- He said there is a need to build a unified federal-level regulatory framework to respond to the expansion of prediction markets combining AI and crypto assets.
Forecast Trend Report by Period
The U.S. Commodity Futures Trading Commission (CFTC) has strongly raised the need to regulate prediction markets.
According to crypto-focused media outlet Decrypt on the 1st (local time), CFTC Commissioner Michael Selig warned that "if prediction-market platforms are not brought within the regulatory perimeter, a collapse like FTX could be repeated."
He pointed to the possibility that major prediction markets such as Kalshi and Polymarket could migrate offshore into unregulated jurisdictions in the absence of clear rules.
He also stressed, regarding recently raised allegations of insider trading and individual lawsuits by state governments, that "regulation through clear policy is needed rather than after-the-fact responses."
He further noted the need to build a unified federal-level regulatory framework to respond to the expansion of prediction markets combining AI and crypto assets.
The remarks suggest that as the prediction-market industry grows rapidly, regulatory gaps are emerging as a new risk.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
