CFTC warns prediction markets against broad contract certifications

The U.S. Commodity Futures Trading Commission (CFTC) issued an advisory reminding prediction market firms, including Kalshi, Coinbase, Polymarket, and Crypto.com, not to submit broad, template-style certifications for event contracts. This marks the second warning in recent months regarding overly generalized submissions. The CFTC noted that many designated contract markets continue to self-certify event contracts without providing detailed terms and conditions or adequate explanations. The regulator emphasized that bypassing the certification process can hinder its ability to assess whether firms have supplied all necessary information and evaluations. However, the CFTC stated that closely related event contracts may be certified as a class, allowing for consolidated filings. The event-contracts market, particularly in sports betting and political predictions, is rapidly evolving amid legal uncertainties surrounding the CFTC's regulatory authority. Additionally, the CFTC extended the regulatory status of Kraken's platform, the Kraken Derivatives Exchange, which has been dormant since early 2025, allowing it to remain positioned for future activity.

Disclaimer: This content is provided for general branding and informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online events, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets or to use any services. Crypto assets are highly volatile and may result in loss. WEEX services and online events may not be available in all regions and are subject to applicable laws, regulations, and eligibility requirements. You are responsible for ensuring that your use of WEEX services complies with local laws and for carefully assessing the risks before participating in any crypto-related activities.