News & Analysis as of

Commodity Exchange Act (CEA)

Morrison & Foerster LLP

CFTC Issues Notable Prediction Markets Advisory and Advance Notice of Proposed Rulemaking

On March 12, 2026, the Commodity Futures Trading Commission (CFTC) issued two noteworthy releases on event contracts and prediction markets: (1) an advisory from the CFTC’s Division of Market Oversight (DMO) providing...more

Troutman Pepper Locke

Tennessee Federal Court Addresses State Authority Over Sports-Event Contracts

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A recent decision from the U.S. District Court for the Middle District of Tennessee marks a significant development in the ongoing dispute over whether sports event contracts offered on prediction market platforms are...more

Patomak Global Partners

Prediction Market Surveillance: CFTC Advisory and SRO Enforcement Action

Kalshi announced that it pursued enforcement actions against two participants for alleged manipulative trading activity. The CFTC also issued a related Prediction Markets Advisory reaffirming its oversight authority in this...more

BakerHostetler

Sports Betting Meets March Madness: Federal CFTC Scrutiny to Impact College Sports

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Prediction markets (i.e., platforms where people can bet on the outcome of future events) have moved rapidly from the periphery of finance into the regulatory mainstream. This week, that shift became unmistakable when Kalshi...more

Haynes Boone

CFTC Re-Issues & Expands Relief from CFTC Letter No. 25-50

Haynes Boone on

On Feb. 26, 2026, the Market Participants Division (“MPD”) of the Commodity Futures Trading Commission (“CFTC”) amended and restated CFTC No-Action Letter No. 25-50 (“Letter No. 25-50”) with new CFTC No-Action Letter No....more

A&O Shearman

CFTC Enforcement Division Issues Advisory On Prediction Market Trading Practices

A&O Shearman on

On February 25, 2026, the U.S. Commodity Futures Trading Commission (“CFTC”) Division of Enforcement released an advisory, reminding market participants of the agency’s authority to pursue misuse of material nonpublic...more

Morrison & Foerster LLP

Prediction Markets and the Law of Insider Trading: A Practical Guide

Prediction markets, where users can take monetary positions on nearly endless scenarios, have surged in popularity in recent months. As prediction markets become more widespread, however, concerns about insider trading on the...more

Moore & Van Allen PLLC

The Desk: March 

Enforcement Round-Up - New CFTC Director of Enforcement? According to early press reports, and confirmed by a recent announcement on March 2,CFTC Chairman Michael Selig has selected David I. Miller to join the agency...more

Seward & Kissel LLP

When Content Becomes Confidential: Insider Trading in Prediction Markets

Seward & Kissel LLP on

There are, broadly speaking, three ways to make money on a prediction market. One is to be better than everyone else at aggregating public information about possible future outcomes. The second is to be clairvoyant. The...more

King & Spalding

New Trick, Same Crime? Insider Trading on Prediction Markets

King & Spalding on

A recent spate of suspiciously timed and highly profitable bets on prediction markets have ignited concerns over whether insiders are quietly gaming the system. According to reports, shortly before the capture of Venezuelan...more

Katten Muchin Rosenman LLP

Know the Outcome? Don't Trade: CFTC Puts Prediction Markets on Notice

In an unusual move, the Commodity Futures Trading Commission’s (CFTC or Commission) Division of Enforcement (Division) issued an advisory (Advisory) on February 25, 2026, highlighting two disciplinary actions brought by...more

Eversheds Sutherland (US) LLP

The deadline for BDC and RIC managers to re-affirm a claim of exception from CPO registration is approaching

Under Commodity Futures Trading Commission (CFTC) regulations, persons who have claimed an exemption or exception from commodity pool operator (CPO) or commodity trading advisor (CTA) status pursuant to part four of the...more

WilmerHale

CFTC Files Amicus Brief Urging Exclusive Federal Jurisdiction of Event Contracts

WilmerHale on

On February 17, 2026, the Commodity Futures Trading Commission (CFTC) filed an amicus curiae brief in the Ninth Circuit supporting North American Derivatives Exchange, Inc., d/b/a Crypto.com Derivatives North America...more

Holland & Knight LLP

Prediction Markets at a Crossroads: The Continued Jurisdictional Battle Over Event Contracts

Holland & Knight LLP on

February 2026 has marked a pivotal stretch in the escalating legal battle over prediction markets in the U.S. In a flurry of legal and regulatory activity, the Commodity Futures Trading Commission (CFTC) publicly declared it...more

Paul Hastings LLP

White House Hosts Third Meeting Between Banking and Crypto Stakeholders, SEC Discusses Innovation Exemption and Stablecoins, and...

Paul Hastings LLP on

The White House Crypto Policy Council convened a third meeting with executives and representatives from the crypto industry and traditional finance to continue discussions on digital asset market structure legislation....more

Katten Muchin Rosenman LLP

Chairman Selig and the CFTC Make the Case for Federal Jurisdiction Over Prediction Markets

The Commodity Futures Trading Commission (CFTC or the Commission) is not waiting for the courts to sort out who regulates prediction markets. In the span of a couple days, CFTC Chairman Michael S. Selig published an op-ed in...more

WilmerHale

Sports and Gaming Law 2025 Year in Review: Top Five Developments

WilmerHale on

2025 marked a period of profound transformation across the sports and gaming industries. From the explosive growth of prediction markets and robust integrity enforcement in sports betting to record-setting franchise...more

Akin Gump Strauss Hauer & Feld LLP

Federal Agencies Signal Renewed Focus on Prediction Markets

Prediction markets are online platforms where people can bet on the outcome of future events with a “yes” or “no” answer, including contracts based on sports, popular culture and politics. These markets have exploded in...more

Epstein Becker & Green

Prediction Markets v. State Gaming Laws: The Kalshi Litigation Gamble

Epstein Becker & Green on

Kalshi, a federally regulated prediction market, is betting big on its business model. Whether that bet pays off depends on how courts resolve a growing conflict between federal commodities regulation and state gambling laws....more

Troutman Pepper Locke

Digital Commodity Intermediaries Act Clears Senate AG Committee

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On January 29, the U.S. Senate Committee on Agriculture, Nutrition, and Forestry (AG Committee), led by Chairman John Boozman (R‑AR), advanced S. 3755, the Digital Commodity Intermediaries Act (DCIA), on a party-line vote....more

Orrick, Herrington & Sutcliffe LLP

Senate agriculture committee advances digital assets market structure legislation

On January 29, the Senate Committee on Agriculture, Nutrition, and Forestry advanced its version of legislation regulating digital assets titled the “Digital Commodity Intermediaries Act.” ...more

Orrick, Herrington & Sutcliffe LLP

CFTC withdraws proposed rule and staff advisory on event contracts

On February 4, the CFTC announced the withdrawal of a proposed rule on event contracts published in the Federal Register in June 2024. The proposal sought to clarify which types of event contracts, particularly those...more

Eversheds Sutherland (US) LLP

CFTC Confirms Morgan Stanley Internal Merger Will Not Affect Status Of Legacy Swaps

On January 30, 2026, the Commodity Futures Trading Commission (CFTC) issued Staff Letter 26‑03 (Staff Letter), providing clarity for swap market participants regarding the treatment of certain legacy swaps with two Morgan...more

Eversheds Sutherland (US) LLP

CFTC Extends Compliance Deadline For Amended Large Trader Reporting Requirements

On January 27, 2026, the Commodity Futures Trading Commission (CFTC) issued No-Action Letter No. 26-02 (No Action Letter), granting conditional relief from the compliance deadline for the CFTC’s 2024 amendments to Part 17 of...more

K&L Gates LLP

From Gaming to Governance: An Early Primer on Rules and Risks for Prediction Platforms

K&L Gates LLP on

Unlike traditional sportsbooks, regulated platforms operate under Commodity Exchange Act and US Commodity Futures Trade Commission (CFTC) rules for derivative products, appealing to institutional players and retail traders...more

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