ChainCatcher report, according to The Block, staff of the U.S. Commodity Futures Trading Commission (CFTC) have issued a no-action letter, substantially exempting prediction market platforms from swap data reporting and recordkeeping requirements. The CFTC’s Division of Market Oversight and Division of Clearing and Risk stated they will not recommend enforcement action against designated contract markets (DCMs) and clearinghouses for failure to comply with the relevant reporting requirements. This move aims to eliminate regulatory uncertainty for event contract platforms. The no-action letter currently covers 19 eligible entities, including Polymarket US, Kalshi, Gemini Titan, and Bitnomial.
CFTC Issues No-Action Letter Exempting Prediction Market Platforms from Swap Data Reporting
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Summary
The U.S. Commodity Futures Trading Commission (CFTC) has issued a no-action letter exempting prediction market platforms from swap data reporting and recordkeeping requirements. The letter, which applies to 19 platforms including Polymarket US and Kalshi, eliminates regulatory barriers for price prediction markets. CFTC divisions will not pursue enforcement actions for non-compliance. This step resolves uncertainty surrounding event contracts, including those linked to inflation data.
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