{
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    "slug": "cftc-pulls-biden-era-proposal-to-ban-sports-political-prediction-markets",
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        "rendered": "CFTC pulls Biden-era proposal to ban sports, political prediction markets"
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        "rendered": "<div data-testid=\"html-renderer-container\">\n<p data-ct-non-breakable=\"undefined\">The US Commodity Futures Trading Commission has withdrawn a Biden administration-era proposal that would have banned sports and political prediction markets, some of the most popular event contracts today.<\/p>\n<p>The <a href=\"https:\/\/cointelegraph.com\/news\/cftc-changes-guard-selig-takes-reins-pham-departs\">recently confirmed CFTC chair<\/a>, Mike Selig, <a href=\"https:\/\/www.cftc.gov\/PressRoom\/PressReleases\/9179-26\" rel=\"noopener nofollow\" target=\"_blank\">said<\/a> on Wednesday that the agency has withdrawn a 2024 notice of proposed rulemaking that sought to ban event contracts for sports, politics and war, among other topics, classifying them as \u201ccontrary to the public interest.\u201d<\/p>\n<p>Selig said the proposal \u201creflected the prior administration\u2019s frolic into merit regulation with an outright prohibition on political contracts ahead of the 2024 presidential election,\u201d adding that CFTC doesn\u2019t plan to issue final rules on the proposal.<\/p>\n<p>\u201cThe Commission is withdrawing that proposal and will advance a new rulemaking grounded in a rational and coherent interpretation of the Commodity Exchange Act that promotes responsible innovation in our derivatives markets in line with Congressional intent,\u201d he added.<\/p>\n<figure>    <img decoding=\"async\" src=\"https:\/\/s3.cointelegraph.com\/uploads\/2026-02\/019c2b78-691f-7040-ad25-920c464327b8.png\" title><figcaption><em>Source: <\/em><a href=\"https:\/\/x.com\/ChairmanSelig\/status\/2019116156964204828\" rel=\"nofollow noopener\" target=\"_blank\" title=\"https:\/\/x.com\/ChairmanSelig\/status\/2019116156964204828\"><em>Mike Selig<\/em><\/a><\/figcaption><\/figure>\n<p>It\u2019s the agency\u2019s latest move affecting prediction markets such as Polymarket and Kalshi, which have surged in popularity for allowing bets on a wide range of events, most notably sports.<\/p>\n<p>The platforms, including offerings from Coinbase and Crypto.com, have faced legal challenges from multiple states that argue <a href=\"https:\/\/cointelegraph.com\/news\/nevada-enforcement-action-coinbase-wagering\">they offer unlicensed gambling<\/a>, a claim the platforms have pushed back on, arguing they\u2019re <a href=\"https:\/\/cointelegraph.com\/news\/cryptocom-sues-nevada-gaming-sport-event-contract-blocks\">regulated exclusively<\/a> by the CFTC.<\/p>\n<h2>CFTC takes down staff letter on sports event contracts<\/h2>\n<p data-ct-non-breakable=\"undefined\">Selig said the CFTC also withdrew a September staff letter that reminded CFTC-regulated entities of their obligations when facilitating sports event contracts and of the need to be prepared for litigation.<\/p>\n<p>The letter, which came ahead of a <a href=\"https:\/\/cointelegraph.com\/news\/us-government-shutdown-delays-crypto-etf-approvals\">US government shutdown<\/a>, told regulated entities to \u201cbe prepared for all foreseeable conditions that may result from facilitating the trading and clearing of sports-related event contracts.\u201d<\/p>\n<p><em><strong>Related: <\/strong><\/em><a href=\"https:\/\/cointelegraph.com\/news\/us-cftc-sec-agency-project-crypto-regulation\"><em><strong>US market regulators move to coordinate on crypto oversight<\/strong><\/em><\/a><\/p>\n<p>It added that CFTC staff were aware of various state regulatory actions and lawsuits around sports event contracts.<\/p>\n<p>The letter warned that companies should be prepared to face such action with \u201cappropriate contingency planning, disclosures, and risk management policies and procedures.\u201d<\/p>\n<p><template data-ct-widget=\"buzzsprout\" data-buzzsprout-podcast-id=\"2040516\" data-buzzsprout-episode-id=\"18518100\"><\/template><\/p>\n<p data-ct-non-breakable=\"undefined\">Selig said the advisory \u201cintended to highlight litigation considerations,\u201d but it had \u201cinadvertently created confusion and uncertainty for our market participants.\u201d<\/p>\n<p>\u201cI look forward to working with staff on an event contracts rulemaking,\u201d he added.<\/p>\n<p><em><strong>Magazine: <\/strong><\/em><a href=\"https:\/\/cointelegraph.com\/magazine\/how-crypto-laws-changed-2025-further-2026\/\"><em><strong>How crypto laws changed in 2025 \u2014 and how they\u2019ll change in 2026<\/strong><\/em><\/a><\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\" label=\"Subscription Form: Crypto Biz Newsletter\"><\/template><\/div>\n<p>Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph\u2019s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently. Read our Editorial Policy <a href=\"http:\/\/cointelegraph.com\/editorial-policy\">https:\/\/cointelegraph.com\/editorial-policy<\/a><\/p>",
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