US CFTC Chairman: Will Release Prediction Market Clear Guidance to Prevent Manipulation and Insider Trading

BlockBeats News, March 12, Commodity Futures Trading Commission (CFTC) Chairman Mike Selig published a statement stating, "Today, we took action by issuing clear guidance on prediction markets to help trading platforms understand the CFTC's expectations for listing new contracts. We take on the responsibility of ensuring this asset class has transparent rules."

Mike Selig, in an interview with CNBC, stated, "The prediction market is a rapidly evolving area, which is why today we took action by issuing some clear guidance to help our trading platforms. Our trading platforms will self-certify contracts and have their own rulebooks, they need to have a clear understanding of the CFTC's expectations. Therefore, we will publish these guidelines in clear written form for trading platforms to follow. Additionally, later today we will also release a pre-rulemaking notice. We intend to establish clear conduct rules for this new asset class and new market. Ensuring there is no manipulation, insider trading, and various abuses in the derivatives market is crucial. Therefore, we will take on the responsibility to ensure these new asset classes have clear conduct rules."