CFTC to Rewrite Prediction Market Rules, Withdraws Sports Betting Ban Proposal

The Commodity Futures Trading Commission will draft new regulations for billion-dollar prediction markets, Chairman Michael Selig announced January 29, 2026, signaling support for “lawful innovation” in event-based trading. Selig will formally rescind a 2024 proposal to ban sports and political wagers on platforms like Polymarket and Kalshi, plus a 2025 staff advisory warning firms against offering sports contracts amid litigation. He called the advisory counterproductive, citing market uncertainty it created. Prediction markets let users trade binary outcomes — from government shutdowns to Oscar winners — with volumes surging despite pushback from state gaming regulators. Selig, appointed CFTC chair in December 2025, made the remarks at a crypto regulation panel alongside SEC Chair Paul Atkins.