CFTC Aims to Differentiate Swaps from Gambling
Ecosystem
- English
- News
- Markets
- Features
- Research
- Opinion
- Podcasts
- Newsletters
- Commissioned
- About
Cryptocurrency Prices (as of Oct 11, 2026)
| Coin | Price | Change (%) | |---|---|---| | DOGE | $0.08525 | +1.14% | | TRX | $0.3303 | +0.18% | | LINK | $12.85 | +0.58% | | ZEC | $1,224.69 | +0.57% | | ADA | $0.2479 | +2.94% | | XRP | $1.39 | +1.06% | | ETH | $2,500.01 | +0.16% | | BTC | $83,023.30 | +0.25% | | XMR | $528.40 | +0.30% | | BNB | $747.23 | +0.44% | | XLM | $0.1951 | +1.09% | | SOL | $109.36 | +0.60% | | HYPE | $84.69 | +0.26% |
Written by:
- Michael Millard - staff writer
- Bryan O'Shea - staff editor
CFTC Proposals Aims to Separate Prediction Markets from Casino Gambling
Latest News (Oct 11, 2026)
The Commodity Futures Trading Commission (CFTC) has proposed two measures:
-
Define event contracts as "swaps" under federal law, including those related to sports, politics, culture, and weather.
-
Exclude traditional casino gambling products from the definition of "swap."
These proposals follow several state lawsuits against prediction market operators like Kalshi and Polymarket, alleging illegal gambling. The CFTC has countered with its own lawsuit to defend its federal jurisdiction over event contracts.
First Proposal:
- Clarifies that event contracts, including those tied to various events, are financial instruments known as swaps under the Commodity Exchange Act.
Second Proposal:
- Codifies the CFTC's position that casino-style gambling products, such as sportsbooks and games, are not derivatives.
Next Steps: Both proposals have a 30-day comment period. The measures set the stage for potential Supreme Court battle over federal and state jurisdiction.
Related:
- NFL backs New Jersey authorities in SCOTUS petition over Kalshi
- [Previous Cointelegraph coverage on prediction markets and jurisdiction](link to relevant articles)