The U.S. Commodity Futures Trading Commission (CFTC) has submitted a proposed rule to the Office of Information and Regulatory Affairs (OIRA) that would expand the definition of "swap" to include event contracts. The CFTC also filed an interim final rule to exclude casino-style gaming products from this category. Both documents are currently under review.

Exclusion for Casino-Style Gaming Products

Alongside the proposal to include event contracts as swaps, the CFTC introduced an interim final rule that removes casino-style gaming products from this classification.

Jurisdiction Dispute and Prediction Markets

The classification is significant because the CFTC maintains that federal law grants it exclusive jurisdiction over swaps traded on regulated platforms, including contracts offered by Polymarket and Kalshi. State regulators in the U.S. dispute this, particularly regarding contracts on sporting events, arguing these are subject to state-level gambling laws.

Related Kalshi Case

Previously, Kalshi lost an appeal, which could potentially lead to the case being considered by the Supreme Court.