The US Commodity Futures Trading Committee (CFTC) has announced a general round table to reassess its regulatory position on predicting markets.
This step, which can significantly affect platforms like Kalshi and Polymarket, comes after the last CFTC request for information about events contracts.
CFTC chair calls for proper charging
She was the head of acting Caroline d. Fam, who took over the leadership after the resignation of Rusten Pinnam, is explicit in criticizing the position of the previous committee. She described it as a “laundry of legal uncertainty” that hindered innovation in the prediction markets.
According to the official press statement, discussions will focus on the legitimacy of juvenile contracts under the commodity exchange law. The round table will address consumer protection concerns and potential organizational amendments.
“Unfortunately, unjustified delay policies and combating innovation in the past few years may strongly restrict CFTC’s ability to the axis to organize proper prediction markets,” He said In the statement.
The round table, which will be held at the CFTC headquarters in Washington, DC, will provide a platform for stakeholders to express concerns and suggest regulatory reforms. According to the regulator, the general comments and participation requests are due by February 21.
These plans come after CFTC intensified its audit in events and platforms not registered under Biden management. Former president, Rosten Pinnam, expanded the supervision of the derivatives of the decentralization and decentralization (Defi).
KALSHI, a specific contract market of CFTC, faced large organizational road barriers. Among them is the committee’s decision to prohibit its proposal for contracts related to the elections. Polymarket, a Blockchain -based prediction market platform, has been fined, $ 1.4 million to offer unregistered scores.
When CFTC KALSHI was targeted five months ago, Polymarket activity decreased by 40 %. This highlights the direct impact of organizational procedures on the sector.
Previous procedures for the committee included a call order to Coinbase four weeks ago amid its investigation in Polymarket. The FBI also seized the Chinikoplan Electronics, CEO of Polymarket, after the platform succeeded in the elections.
This step referred to the organization’s commitment to impose compliance in the emerging prediction market.
Industry response and market morale
Meanwhile, CFTC’s regulatory access also extended to sports decking contracts, as it is clear from its recent review of the Crypto.com betting. Before that, it was also forced to turn off the Super Bowl bet.
“CFTC says it has monitored many major obstacles to the regulation of balanced prediction markets, but the following list indicates that it instead identified a boat load of things,” Note Jeff Zoshudni, a sports wager correspondent.
Comments highlight The complexity of the organizers In creating policies that encourage innovation while ensuring consumer protection.
Despite the organizational fusion, the prediction markets get support from the prominent industry numbers. Vitalik Buterin, co -founder of Ethereum, recently defended platforms like Polymarket. As Beincrypto stated, its classification as gambling is a misunderstanding of their role.
“The prediction markets are interesting because it is a social cognitive tool: the audience gets a vision about the importance of some events and what kinds of things that are likely to happen,” Potterin, Potterin books.
Nevertheless, even if CFTC finds a balanced approach to Polymarket, organizational challenges continue globally. Thailand recently announced measures targeting polymers of encryption -based betting. Likewise, the prediction market faces legal problems in Singapore and France, which reflects the broader prediction markets around the world.
Meanwhile, this recent development follows the last CFTC announcement of the general coach to discuss the structure of the encryption market. It indicates a broader payment of stakeholders’ participation in regulating digital assets.
The results of both round table can play a pivotal role in shaping the future of the sector, given the promotion of the organization to protect the consumer.
Disintegration
In adherence to the confidence project guidance, beincrypto is committed to unprepared and transparent reporting. This news article aims to provide accurate information in time. However, readers are advised to independently verify facts and consult with a professional before making any decisions based on this content. Please note that the terms, conditions, privacy policy have been updated and the evacuation of responsibility.
