CFTC Grants No-Action Relief to Multiple Prediction Markets
The US Commodity Futures Trading Commission has granted no-action reduction to 4 prediction market operators, easing enforcement strain on platforms which have confronted mounting regulatory scrutiny.
Key Takeaways:
- The CFTC granted slender no-action reduction to 4 prediction markets, decreasing speedy enforcement danger.
- Platforms should absolutely collateralize all contracts and publish time-and-sales information to keep eligibility.
- The transfer comes amid a surge in prediction market exercise, elevating expectations for long-term regulatory readiness.
In a notice published Thursday, the company mentioned it could not pursue motion in opposition to Polymarket US, LedgerX, PredictIt and Gemini Titan, Gemini’s event-contracts arm, for failing to meet sure swap information reporting and record-keeping obligations, as long as they adjust to a set of situations outlined within the letters.
The CFTC emphasised that the reduction is slender and mirrors therapy given to different designated contract markets and clearing organizations.
CFTC Signals Flexibility as Prediction Markets Build Compliance Systems
The no-action letters don’t change current regulation however sign a willingness by regulators to give rising prediction markets room to function as they refine their compliance methods.
To qualify for continued reduction, the platforms should absolutely collateralize all contracts, with reserves masking each place in full.
They are additionally required to publish time-and-sales information for every transaction as soon as it’s executed.
These situations purpose to guarantee transparency and mitigate counterparty danger, particularly in markets that permit buying and selling on outcomes starting from sports activities to political occasions and cultural oddities.
Prediction markets fall below the CFTC’s jurisdiction as designated contract markets, triggering intensive reporting guidelines that many more moderen platforms have struggled to meet.
The new reduction reduces the specter of speedy enforcement however doesn’t absolve the businesses from longer-term compliance expectations.
The regulatory pause comes throughout a standout 12 months for event-driven buying and selling. Prediction markets have surged in recognition all through 2025, with some platforms posting transaction exercise on par with mid-tier crypto exchanges.
Kalshi recorded $5.14 billion in buying and selling quantity over the previous 30 days, in accordance to DefiLlama, whereas Polymarket registered $1.9 billion over the identical interval.
Major crypto corporations are additionally eyeing the area. Crypto.com has launched its personal prediction market product, anticipated to combine with Trump Media, and website code signifies Coinbase is exploring an identical providing.
While the CFTC’s no-action stance affords short-term respiration room, the sector now faces elevated expectations to show transparency, collateral integrity and readiness for full regulatory oversight.
SEC Clears DTCC to Launch Landmark Tokenization Program
Yesterday, the US Securities and Exchange Commission also approved a major step towards blockchain-based securities markets by granting the Depository Trust Company, a DTCC subsidiary, a uncommon no-action letter.
The resolution permits DTC to start tokenizing Treasuries, index ETFs and belongings tied to the Russell 1000 beginning in late 2026 on pre-approved blockchains.
Such letters are unusual, signalling sturdy regulatory confidence within the framework DTCC proposed and marking a broader shift within the SEC’s strategy to blockchain infrastructure.
The SEC has taken a noticeably extra open stance towards blockchain initiatives over the previous 12 months.
Two decentralized bodily infrastructure community (DePIN) initiatives received similar no-action treatment, and in late September, the company cleared funding advisers to work with state belief firms serving as crypto custodians.
In August, the company issued a similar letter to Double Zero, shocking many within the business and fueling optimism that the SEC, now led by Chair Paul Atkins, is taking a extra measured strategy after years of rigidity below former chair Gary Gensler.
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