CFTC Advisory on Prediction Markets and Event Contracts

CFTC Press Releases

Published March 12th, 2026

Detected March 12th, 2026

Summary

The CFTC's Division of Market Oversight issued an advisory reminding designated contract markets (DCMs) of their regulatory obligations under the Commodity Exchange Act and Commission regulations concerning the listing of event contracts. The advisory encourages innovation while emphasizing proactive compliance, particularly for sports-related event contracts.

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What changed

The Commodity Futures Trading Commission (CFTC) Division of Market Oversight has issued an advisory to designated contract markets (DCMs) regarding the listing and trading of event contracts. This advisory aims to foster growth and innovation in prediction markets while reinforcing DCMs' regulatory duties under the Commodity Exchange Act (CEA) and Commission regulations, specifically referencing CEA section 5(d), Part 38, Core Principle 3, and product submission requirements. It also highlights specific considerations for sports-related event contracts.

Designated contract markets are urged to take proactive measures to ensure their prediction market operations remain compliant with the CEA and CFTC regulations. While this is an advisory and not a rule, DCMs are expected to adhere to the guidance to avoid potential enforcement actions. Compliance officers should review the advisory and their firm's current practices for listing event contracts to ensure alignment with CFTC expectations.

What to do next

Review CFTC Staff Letter No. 26-08 for detailed guidance on event contracts.
Assess current practices for listing and trading event contracts against CEA and Commission regulations.
Ensure proactive measures are in place to maintain compliance with prediction market regulations.

Source document (simplified)

Release Number 9193-26

CFTC Staff Issues Prediction Markets Advisory

March 12, 2026

WASHINGTON — The Commodity Futures Trading Commission’s Division of Market Oversight today issued a prediction markets advisory regarding the listing for trading of event contracts.

In light of the rapid rise in popularity of prediction markets, the division seeks to encourage growth and innovation in these markets while reminding designated contract markets of their regulatory obligations pursuant to the Commodity Exchange Act and Commission regulations.

The advisory, among other things, underscores DCMs’ regulatory obligations with respect to CEA section 5(d) and Part 38, DCM Core Principle 3 and the Appendix C guidance, and product submission requirements. It also discusses certain nuances that may have particular applicability to sports-related event contracts.

The division believes that, as front-line regulators, DCMs should take proactive steps to ensure their markets continue to evolve in a manner that complies with the CEA and Commission regulations.

-CFTC-