CFTC proposes formal rule classifying event contracts as swaps
The US Commodity Futures Trading Commission has proposed rules to classify event contracts as swaps, aiming to secure regulatory authority over prediction platforms like Kalshi.
FTMQ Crypto, written by our newsroom0 views
The United States Commodity Futures Trading Commission proposed a formal rule on Friday, 9 October 2026, to classify certain event contracts traded on prediction platforms like Kalshi as swaps. CoinDesk reported that the regulatory move aims to bring these contracts under the exclusive oversight of the agency and place them beyond the reach of state gambling regulators. [1]
Under the proposed framework, the regulator is establishing a new definition to solidify the legal standing of event contracts as swaps, according to CoinDesk. The agency is also seeking to explicitly define the specific types of sports wagering that do not constitute swaps transactions. [1]
The CFTC is an independent federal government agency created in 1974. It is responsible for regulating derivatives markets in the United States, including futures, swaps, and certain option contracts. [2]
The rulemaking initiative formalises the pursuit of the CFTC for exclusive regulatory authority over prediction markets amid an ongoing legal fight over the jurisdiction of event contracts, CoinDesk reported. [1]
In short
- The CFTC proposed a rule on 9 October 2026 to classify certain event contracts as swaps.
- The proposed rule aims to place prediction platforms like Kalshi under CFTC oversight rather than state gambling regulation.
- The CFTC was created in 1974 to regulate US derivatives markets including futures, swaps, and options.
Sources
Every paragraph above points to the numbered items it rests on. Read the originals here.
- [1]U.S. CFTC moves to fold event contracts into swaps regulations as legal fight ragesCoinDesk Top Stories, 3h ago (the report this story comes from)
Background
- [2]United States Commodity Futures Trading Commission on Wikipedia
Our newsroom writes these reports with the help of software, from the 2 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.
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- CFTC joins SEC to propose crypto rules following congressional bill delayEthereum, 4d ago
- CFTC Chair Mike Selig defends new rules to prevent exchange collapsesMarket Moves, 2d ago
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