According to Unfolded, the U.S. Commodity Futures Trading Commission (CFTC) has issued a comprehensive no-action letter exempting prediction market platforms from swap data reporting and record-keeping obligations. This measure applies to Designated Contract Market (DCM)-based prediction market platforms, including Kalshi and Polymarket, and treats standardized exchange-based prediction markets as closer to futures contracts than swaps. The market evaluates this decision as a move that lowers platform operating costs and alleviates regulatory uncertainty. Furthermore, analysis suggests that the CFTC is re-emphasizing its stance that "prediction markets are subject to federal regulation" in the process of recent jurisdictional disputes with several state governments.
