The U.S. CFTC released a consultation opinion on prediction markets, emphasizing that trading platforms must comply with regulatory requirements
According to the CFTC official website, the U.S. Commodity Futures Trading Commission (CFTC) has issued a consultation opinion on the trading of event contracts in the prediction market. In light of the rapid development of prediction markets, the agency aims to encourage the growth and innovation of these markets while reminding designated contract markets (DCM) to fulfill their regulatory obligations under the Commodity Exchange Act (CEA) and the Commission's regulations.
The consultation opinion emphasizes the regulatory responsibilities of DCM in complying with CEA Section 5(d), Part 38, DCM Core Principle 3, and Appendix C guidelines, as well as product submission requirements. It also discusses some details that may be particularly applicable to sports event contracts.
The Market Oversight Division believes that, as the frontline regulatory agency, DCM should proactively take measures to ensure that its markets continue to comply with the requirements of the CEA and the Commission's regulations during their development.
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