CFTC pulls Biden-era proposal to ban sports, political prediction markets

CFTC Chair Mike Selig described the proposal as a “frolic into merit regulation” by the Biden administration.

The US Commodity Futures Trading Commission has withdrawn a Biden administration-era proposal that would have banned sports and political prediction markets, some of the most popular event contracts today.

The recently confirmed CFTC chair, Mike Selig, said on Wednesday that the agency has withdrawn a 2024 notice of proposed rulemaking that sought to ban event contracts for sports, politics and war, among other topics, classifying them as “contrary to the public interest.”

Selig said the proposal “reflected the prior administration’s frolic into merit regulation with an outright prohibition on political contracts ahead of the 2024 presidential election,” adding that CFTC doesn’t plan to issue final rules on the proposal.

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