CFTC eases rules for prediction markets, waives swap data reporting

The U.S. Commodity Futures Trading Commission (CFTC) has issued a comprehensive no-action letter exempting prediction market platforms from swap data reporting and record-keeping obligations, Unfolded reported. The measure applies to Designated Contract Market (DCM)-based platforms such as Kalshi and Polymarket, treating standardized, exchange-based prediction markets as more akin to futures products than swaps. Market observers view the decision as a move that will lower operating costs for these platforms and alleviate regulatory uncertainty. The development comes as the CFTC has reportedly been re-emphasizing its position that prediction markets are subject to federal regulation amid recent jurisdictional disputes with several state governments.