WASHINGTON, June 10, 2026 — The U.S. Commodity Futures Trading Commission published a Notice of Proposed Rulemaking seeking public comment on amendments to Regulation 40.11 and the addition of Appendix F to Part 40, establishing a framework for evaluating certain event contracts.
According to the CFTC, the proposal comes amid continued growth in the number and variety of event contracts listed for trading by CFTC-registered entities, including contracts referencing sporting events.
Under the proposal, the Commission would establish a framework for determining whether contracts involve activities enumerated in Section 5c(c)(5)(C) of the Commodity Exchange Act. Those activities include terrorism, assassination, war, gaming, and conduct that is unlawful under federal or state law.
Event Contract Review Framework
The proposal would establish a 90-day review process and a set of public-interest factors that the Commission would apply on a contract-by-contract basis. It would also define key statutory terms, including “involve” and “gaming.”
“The CFTC will protect the integrity of our regulated markets without standing in the way of responsible innovation,” CFTC Chairman Michael S. Selig said.
“This proposal gives the Commission a durable, transparent framework to identify the contracts Congress directed us to scrutinize while letting legitimate markets move forward,” Selig added.
Prediction Market Rulemaking
The Commission said the proposal is narrowly tailored to address one aspect of the Advance Notice of Proposed Rulemaking relating to prediction markets published in March and noted that the broader initiative could lead to additional rulemaking.
According to the agency, the proposal is intended to provide procedural protections while establishing a framework for evaluating whether certain event contracts are contrary to the public interest.
Why This Matters
The proposal marks another step in the CFTC’s efforts to develop a regulatory framework for prediction markets amid continued growth in event contracts, including those tied to sporting events.
