CFTC Proposes Rules to Distinguish Prediction Markets from Traditional Gambling

The Commodity Futures Trading Commission (CFTC) announced two actions on October 9, 2026, aimed at clarifying the regulatory status of prediction markets. A proposed rule would explicitly classify contracts based on sports, politics, cultural events, and weather as financial products (swaps), falling under the CFTC's jurisdiction. Concurrently, a separate interim final rule formalizes the exclusion of conventional sportsbook wagers and casino games from the definition of swaps, keeping them under state or tribal gambling oversight.