CFTC to Host Roundtable on Prediction Market Regulation | Airdrop Alert Pro

American Products futures The Trade Commission (CFTC) announced a public roundtable to reevaluate its regulatory stance on the forecast market.

The move could seriously affect platforms such as Kalshi and Polymarket, following the recent request from the CFTC for information on the event contract.

CFTC Chairman Requires Conventional Regulations

Acting Chairman Caroline D. Pham takes over the leadership Rostin Behnam’s resignationshe was outspoken about the committee’s previous position. She described it as “the dirt of legal uncertainty” that hindered innovation in the forecast market.

According to the official press release, the discussion will focus on the legality of the activity contract under the Commodity Exchange Act. The roundtable will address consumer protection issues and potential regulatory amendments.

“Unfortunately, improper delays and anti-innovation policies over the past few years have severely limited the ability of CFTC to shift to common sense adjustments in the forecast market,” PHAM explain In the statement.

The roundtable will be held at the CFTC headquarters in Washington, D.C. and will provide stakeholders with a platform to express concern and propose regulatory reforms. According to the regulator, public comments and requests for participation will be submitted on February 21.

The plans come after the CFTC strengthened scrutiny of incident contracts and unregistered platforms under the Biden administration. Former Chairman Rostin Behnam has expanded oversight of crypto derivatives and decentralized finance (defi).

Kalshi is a designated contract market regulated by the CFTC and has faced important regulatory hurdles. These include the committee’s decision to block its proposal for an election-related contract. Polmarket, a Blockchain-based prediction market platformfined $1.4 million for providing unregistered swaps.

Five months ago when CFTC targeted Kalshi Polmarket activity dropped 40%. This highlights the direct Impact of regulatory actions in this department.

The Commission’s past actions also included issuance Subpoena to Coinbase Four weeks ago, due to its investigation into the multi-cluster market. The FBI also seizes Polymarket CEO Shaynecoplan’s electronic products Follow the platform for election success.

The move marks a commitment by regulators to implement compliance in emerging forecast markets.

Industry reactions and market sentiment

At the same time, the CFTC’s regulatory scope has also been extended to sports betting contracts, which proves its recent Comment on Crypto.com’s Super Bowl Betting Contract. Before that, it also forced Robin Stop launching Super Bowl betting contracts.

“The CFTC said it found several key obstacles to predicting market balance adjustment, but the subsequent listings suggest they have identified a lot of things.” Comment Geoff Zochodne, sports betting reporter.

Comments Highlight The complexity of regulators Develop policies that encourage innovation while ensuring consumer protection.

But despite regulatory restrictions, the forecast market is backed by high-profile industry figures. Ethereum co-founder Vitalik Buterin recently provided a defense for platforms like Polymarket. As beincrypto Reporthe asserted that categorizing them as gambling was a misunderstanding of their role.

“Forecasting markets are interesting because they are a social cognitive tool: the public understands the importance of certain events and what might happen,” he said. Write.

Nevertheless, even though the CFTC has found a balanced approach to market pluralism, regulatory challenges remain globally. Thailand recently announced several measures to target cryptocurrency-based betting. Similarly, the forecast market is facing legal troubles Singapore and Francereflecting the wider review forecast market faced worldwide.

Meanwhile, this latest development was recently announced by the CFTC Public roundtable discusses cryptocurrency market structure. This demonstrates a widespread push for stakeholder participation in digital asset regulation.

The results of these two roundtables may play a key role in shaping the future of the industry, given the regulator’s push toward consumer protection.