PiCK
White House Starts Review of CFTC Prediction Market Rules After Trump Backs Agency
Summary
- The White House's Office of Information and Regulatory Affairs, or OIRA, has begun reviewing the CFTC's draft prediction-market rule.
- President Donald Trump publicly said preserving the CFTC's exclusive authority over prediction markets is very important.
- The CFTC has sued five states while asserting exclusive jurisdiction over prediction markets, while state governments say they also have regulatory authority because the contracts could violate sports betting and gambling laws.
Forecast Trend Report by Period
The White House has begun reviewing proposed rules for prediction markets.
The Block reported on May 27 that the Office of Information and Regulatory Affairs, part of the White House Office of Management and Budget, recently received a draft rule on prediction markets from the Commodity Futures Trading Commission and started its review.
A CFTC spokesperson said the agency submitted a proposed rule on event contracts to OIRA and will provide further comment after the review is complete.
President Donald Trump had already publicly backed the CFTC's position. In a Truth Social post the previous day, he wrote that preserving the CFTC's exclusive authority over prediction markets is very important.
The CFTC has also moved to strengthen its jurisdiction over prediction markets. In particular, CFTC Commissioner Michael Selig has forcefully argued that prediction markets fall under the agency's "exclusive jurisdiction." The agency has also sued five states: Wisconsin, Illinois, Arizona, Connecticut and New York.
State governments, meanwhile, argue they also have regulatory authority because prediction markets could effectively amount to sports betting and violate gambling laws.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
