CFTC Publishes Advance Notice of Proposed Rulemaking on Prediction Market Event Contracts, USA, March 2026

On March 12, 2026, the Commodity Futures Trading Commission published an Advanced Notice of Proposed Rulemaking (ANPRM) in the Federal Register seeking public comment on whether the Commission should amend or issue new regulations governing event contracts traded on prediction markets. The ANPRM is at the pre-rulemaking stage; it is not a proposed rule and imposes no new legal obligations. Comments must be submitted in writing within 45 days of Federal Register publication.

The controlling authority is the Commodity Exchange Act (CEA), 7 U.S.C. § 1 et seq. The ANPRM specifically cites the CFTC's authority under CEA Section 5c(c), which directs the Commission to review event contracts for potential public interest concerns. The questions posed in the ANPRM address: the application of statutory core principles under CEA Section 5(d) and related CFTC regulations to prediction markets; the categories of event contracts that may be designated as contrary to the public interest; cost-benefit considerations related to prediction markets; and other policy questions relevant to the Commission's regulatory authority.

Designated contract market operators — including Kalshi, Forecast Exchange, and Robinhood's prediction market operations — face the most immediate practical impact, as the ANPRM will define the rulemaking boundaries within which their products must operate. Platform operators currently offering event contracts must monitor the comment process and consider submitting formal responses to shape the regulatory outcome. Operators in the sports event contract sector face particular attention, as the CFTC's prior withdrawal of the sports event contracts rule proposal on February 4, 2026 (CFTC Press Release No. 9179-26) directly preceded this broader ANPRM.

The 45-day comment period runs from the date of Federal Register publication. The ANPRM does not pre-determine any outcome; the CFTC may issue a proposed rule, determine no rule change is needed, or take no further action after reviewing comments. DCM applicants should note that alongside this ANPRM, the CFTC has filed lawsuits against Arizona, Connecticut, and Illinois (CFTC Press Releases 9206-26 and 9211-26) seeking to establish federal preemption of state-level enforcement against federally licensed prediction market operators.

Prokopiev Law Group advises on CFTC rulemaking participation, prediction market licensing, and event contract product design; our dedicated partnership network connects clients with U.S. derivatives regulatory specialists to support comment submissions and DCM application processes. Contact us to discuss your specific situation. We handle event contract structuring, CFTC ANPR comment drafting, prediction market regulatory compliance, DCM designation applications, and cross-border derivatives regulatory advisory.

Source: CFTC Press Release No. 9194-26, "CFTC Seeks Public Comment on Advanced Notice of Proposed Rulemaking Relating to Prediction Markets," March 12, 2026, https://www.cftc.gov/PressRoom/PressReleases/9194-26. Confirmed April 14, 2026.

The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.