CFTC proposes classifying prediction market event contracts as swaps, escalating its jurisdictional battle with U.S. states

The Commodity Futures Trading Commission published a Notice of Proposed Rulemaking that would expressly define "swap" to include event contracts, listing sports, politics, cultural and weather-related events among the covered categories. The proposal states such contracts are financial instruments commonly known in the trade as swaps and aims to resolve ambiguity around them. The agency is seeking public comment, with written submissions due via Regulations.gov within 30 days of publication in the Federal Register. Chairman Michael S. Selig said the products are commodity derivatives within the CFTC's remit under the Commodity Exchange Act and within its exclusive jurisdiction.

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