Sidley Discusses CFTC Guidance, Advance Notice of Proposed Rulemaking for Prediction Markets

This article analyzes the CFTC’s latest guidance and proposed rulemaking efforts shaping the future of prediction markets, signaling a more assertive regulatory approach. It highlights key considerations for market participants, including contract design, manipulation risk, and engagement with regulators and industry stakeholders, particularly in the context of sports-related event contracts. The piece also outlines the CFTC’s areas of focus as it considers a tailored regulatory framework, including margin, public interest determinations, and insider trading concerns. Readers will gain practical insight into how to navigate evolving compliance expectations and position themselves as the regulatory landscape continues to develop.