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U.Pastuor . S S. government, in fact is formally reversed its previous position on banning certain activities at prediction market companies like Kalshi and Polymarket (U.S) with U.P. A , S. Chairman Mike Selig of Commodity Futures Trading Commission moved Wednesday to withdraw a proposed event-contracts rule from 2024 and scrapping an earlier advisory that he said confused the industry.
Similarly, in 2024, the derivatives regulator proposed a rule that would have banned contracts according to the outcome of political events; legally they were issued with illicit contracts on war, terrorism and assassination and calling them “contrary to public interest”. President Donald Trump returned to the White House and appointed new CFTC leadership, but that rule never reached a final stage before that ruling. After losing a court battle over Kalshi’s intended offering that same year, the CFTC had allowed political-based prediction markets to launch.
Selig, the agency’s recently confirmed chairman, has now cleared its decks of that and a small advisory issued in September on some contract markets.
A statement echoed the proposal for 2024 event contracts, Selig said in a statement that “the prior administration’s frolic into merit regulation with an outright prohibition on political contracts ahead of the 20 24 presidential election” was “The proposed proposals reflect the concept of ‘an early-day and unpopularity” approach to its policy. This is a proposal withdrawal from the Commission that would be furthering “the development of an alternative rulemaking, which will follow in ‘an intelligent and coherent interpretation of the Commodity Exchange Act to encourage responsible innovation in our derivatives markets according to Congressional intent.” Paraphrast.
But Selig’s move is surprising, after the comments of last week that prompted it to be coming. He’d “directed CFTC employees to move forward with the writing of an event contracts rulemaking,” he said. , “It’s a phrase that says.
The Trump presidency’s embrace of the prediction markets has also helped to fuel interest from companies who want to impose their own name on industry such as Coinbase, or in an ongoing search for comparable items from Cboe.
His September advisory Selig pulled back had been intended to warn platforms about litigation issues, but it “inadvertently created confusion and uncertainty for our market participants” he said. He said ‘Although s are in the line, “
The CFTC is likely to be the voice in digital assets oversight, where the prediction markets have been closely linked with interest. Several new initiatives are under consideration, and the Congress is discussing its crypto market structure bill that among other points – is intended to make the CFTC the rightful watchdog of crypto spot markets which do not involve securities.
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