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ARTICLE · 19 MARCH 2026

CFTC Issues Request For Comment And Staff Advisory On Prediction Markets

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On March 12, 2026, the Commodity Futures Trading Commission ("CFTC") released two documents regarding "event contract" derivatives traded on prediction markets.

United StatesFinance and Banking
Matthew Bisanz
Matthew Bisanz
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Jakarri Hamlin
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Steffen Hemmerich
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Marla Matusic
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Anna T. Pinedo
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On March 12, 2026, the Commodity Futures Trading Commission ("CFTC") released two documents regarding "event contract" derivatives traded on prediction markets. The CFTC issued an Advance Notice of Proposed Rulemaking ("ANPRM") requesting public comment on the regulation of prediction markets. The CFTC's Division of Market Oversight ("DMO") issued a staff advisory providing guidance to designated contract markets ("DCMs") on the listing and trading of event contracts (the "Staff Advisory").

Comments on the ANPRM are due 45 days after publication in the Federal Register, which is expected shortly. We provide background on key aspects of the ANPRM and Staff Advisory.

BACKGROUND

Prediction markets are trading platforms through which participants enter event contracts. "Event contracts" are instruments that pay out based on the occurrence or non-occurrence of a specified event. For example, an event contract might pay $1 if a particular candidate wins an election or if a certain team

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