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US CFTC Released Prediction Market Advisory Opinion, Emphasizing Trading Platforms Must Comply with Regulatory Requirements
ChainCatcher News reports that the U.S. Commodity Futures Trading Commission (CFTC) has issued a consultation on market advisory opinions regarding the listing of event contracts for trading. Given the rapid development of prediction markets, the agency aims to encourage growth and innovation in these markets while reminding designated contract markets (DCMs) to fulfill their regulatory obligations under the Commodity Exchange Act (CEA) and commission regulations.
The consultation emphasizes the regulatory responsibilities of DCMs in complying with CEA Section 5(d), Part 38, Core Principles for DCMs Principle 3, and Appendix C guidelines, as well as product submission requirements. It also discusses details that may be particularly relevant to sports event contracts.
The Market Oversight Division believes that as frontline regulators, DCMs should proactively take measures to ensure their markets continuously meet the requirements of the CEA and commission regulations during development.