CFTC Unveils Prediction Market Regulations Impacting Kalshi, Polymarket, and Coinbase

TLDR On Thursday, the CFTC released a staff advisory and launched formal rulemaking procedures for prediction market regulation Chair Mike Selig, currently the CFTC’s only commissioner, asserts the agency holds exclusive regulatory authority over prediction markets Companies including Kalshi, Polymarket, and Coinbase received preliminary operational framework for conducting business in the United States A federal judge in Ohio recently denied Kalshi’s attempt to prevent Ohio gaming regulators from taking action, challenging the exclusive federal jurisdiction claim Following Federal Register publication, the public comment period will remain open for 45 days The Commodity Futures Trading Commission has advanced its regulatory approach to prediction markets through two significant actions: publishing operational guidance and initiating a comprehensive rulemaking procedure that may fundamentally alter the sector. Prediction markets are one of the most exciting innovations in financial markets. Yet for too long, the @CFTC has failed to provide guidance for these markets being used by millions of Americans. This ends today. Read what steps the agency is taking here… — Mike Selig (@ChairmanSelig) March 12, 2026 On Thursday, CFTC Chair Mike Selig unveiled these initiatives. Characterizing prediction markets as “one of the most exciting innovations in financial markets,” he acknowledged the agency’s prolonged absence in establishing regulatory clarity. The agency published a staff advisory that categorizes event contracts on prediction platforms as a distinct financial asset category. Additionally, an Advanced Notice of Proposed Rulemaking was filed with the Federal Register, initiating a 45-day period for public input. Prediction markets operate as platforms enabling users to trade contracts based on binary event outcomes — such as election results or sporting event winners. Among the platforms operating as CFTC-designated contract markets are Kalshi, Polymarket, and Co...