U.S. CFTC in talks with every major pro sports league on policing prediction markets
The U.S. Commodity Futures Trading Commission (CFTC) is in discussions with all major professional sports leagues to enhance oversight of sports-related prediction markets, Chairman Michael Selig announced at the FINRA conference. Following a data-sharing agreement with Major League Baseball in March, the CFTC aims to monitor insider trading and market manipulation tied to event contracts. Selig emphasized that federally regulated prediction markets like Kalshi and Polymarket fall under federal oversight, not state gaming laws, and the CFTC has sued several states attempting to block such contracts. He highlighted insider trading cases, including an incident on Kalshi involving a MrBeast employee. The CFTC is also reviewing exchange-traded products linked to prediction markets and coordinating with the SEC. This marks a shift under the Trump administration, which supports prediction markets and crypto products.
Key facts
- CFTC in talks with all major U.S. pro sports leagues for prediction market oversight.
- Data-sharing agreement with MLB signed in March; more leagues expected.
- CFTC sued 5-6 states challenging federal authority over event contracts.
- Insider trading case on Kalshi involving MrBeast employee cited.
- CFTC reviewing prediction-market ETFs and coordinating with SEC.