The White House in the United States has initiated a review of CFTC's Prediction Market Regulatory Rules

BlockBeats News, May 28: The White House Office of Information and Regulatory Affairs (OIRA) has begun to review a draft rule proposed by the U.S. Commodity Futures Trading Commission (CFTC) regarding prediction markets, which may impact the future operation of prediction market platforms like Kalshi and Polymarket in the U.S. Federal documents show that the rule was submitted for OIRA review on May 26 and pertains to "prediction markets." While the full rule has not been released, the market believes this indicates that the CFTC is advancing towards establishing a broader federal-level event contract regulatory framework.

Previously, several states such as Illinois and New Jersey have argued that event contracts, particularly in sports, are essentially online gambling. However, Kalshi and the CFTC believe that designated contract markets regulated under federal commodity law should be under the exclusive jurisdiction of the CFTC. It is worth noting that U.S. President Trump had publicly endorsed CFTC's "exclusive regulatory authority" over prediction markets. This proposal also follows CFTC's public comment solicitation initiated in March this year, which included discussions on which prediction market contracts might be banned for being against the public interest, touching on areas such as elections, gambling, and sports events.